Capital Small Finance Bank to hit IPO street, files draft papers with Sebi

The funds raised from the issue will bolster the lender's Tier-I capital to address future capital needs driven by asset growth, especially in loans and investments, and to ensure compliance with the RBI's capital adequacy regulations, the lender said.

The bank is supported by private investors, including Amicus Capital, Oman India Joint Investment Fund (OIJIF), and Pi Ventures. It recently received an equity investment from Max Life Insurance Company Ltd, valuing the bank at over Rs 1,600 crore for a minority equity stake.

Established in 2000 by Samra, the Jalandhar-headquartered bank changed its name from Capital Local Area Bank to Capital SFB and commenced banking operations on April 24, 2016, becoming India's first small finance bank (SFB).

Starting with 47 branches, it has now expanded to more than 172 branches across Delhi, Haryana, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh. The bank offers a range of loan products, including those for small and medium enterprises, agriculture, housing, and other needs, primarily serving small borrowers.

For the June 2023 quarter, the bank's total business grew by 15.6 percent to Rs 12,583.68 crore. For the quarter, the bank had registered a profit after tax at Rs30.10 crore as compared to Rs 18.28 crore a year ago. Total income stood at Rs 202.29 crore versus Rs162.91 crore.

Its total advances as of June 2023 was at Rs 5,519 crore, while its deposits stood at Rs 7,064.35 crore, with current and savings deposit share at 40.04 percent. Gross and net non-performing assets improved to 2.81 percent and 1.37 percent from 2.93 percent and 1.7 percent.