Mumbai, Jan. 23 -- India's small finance banks (SFBs) are starting to think beyond their niche. As a handful of these lenders prepare for a possible transition to universal banking, they are stepping up senior hiring from larger banks and non-bank financiers to strengthen leadership and scale businesses, said two people aware of the developments.

The move highlights how, over a decade after the Reserve Bank of India (RBI) opened the door to small finance bank licences, parts of the sector are gearing up for a more complex phase of growth, one where talent depth and managerial capability could prove as critical as rapid balance-sheet expansion.

The people cited above said AU Small Finance Bank, Ujjivan Small Finance Bank, Suryoday Small ...