Jalandhar-headquartered Capital Small Finance Bank has raised about $4 million from SIDBI (Small Industries Development Bank of India) and existing investors in its latest round of fund-raising.
Capital Small Finance Bank was one of the 10 entities to receive Reserve Bank of India’s (RBI) in-principle approval to start small finance bank operations in September 2015. In March, it raised Rs 64.67 crore from Pi Ventures LLP, HDFC Standard Life Insurance Co. Ltd and ICICI Prudential Life Insurance Co. Ltd, reported Mint.
Started in April as small finance bank operations, Capital Small Finance Bank operates 73 branches with 35 in rural areas, 27 in semi-urban areas and the rest in urban and metro areas. In 2016-17, it had advances of Rs 1,369.6 crore, up 19.26 per cent from a year ago, and a deposit base of Rs 2,378.21 crore, up 31.09 per cent from a year ago, according to its latest annual report.
SIDBI signed an MoU with Jalandhar-based Capital Small Finance Bank (CSFB) to provide concessional finance to MSMEs (Micro, Small and Medium Enterprises) in February, this year.
The bank’s business is projected to increase four-fold from Rs 3,000 crore as on March 31, 2016 to Rs 12,000 crore and branch network to 216 by March 2021.
Apart from Capital Small Finance Bank, Equitas Small Finance Bank, Suryoday Small Finance Bank, Ujjivan Small Finance Bank and Utkarsh Small Finance Bank are the other entities operating in the niche banking space.
Yesterday, the Reserve Bank had issued a licence to North East Small Finance Bank Limited to carry on the business of small finance bank in India.
Capital Small Finance Bank: Website