Small Finance Banks (SFBs) have shown strong growth in both advances and deposits, led by Suryoday SFB with a 23.5% increase in gross advances and AU SFB with a 19.3% rise in deposits. Despite challenges in the microfinance segment, SFBs are projected to have a 18-20% growth in FY2026, rebounding to 22-25% in FY2027 with a shift towards secured lending.