Capital Small Finance Bank Limited started operations as India’s 1st Small Finance Bank on April 24, 2016 after conversion from Capital Local Area Bank. Prior to conversion to a Small Finance Bank, Capital Local Area Bank was operating as India’s largest local area bank since January 14, 2000.
The Bank pioneered in bringing modern banking facilities to the rural areas at low cost. The Bank introduced 7-Day branch banking with extended banking hours since its first day of operations. The focus to serve common man and the local touch advantage has given the Bank a competitive edge over other banks operating in the region. Within a short period, most of the branches become market leaders of their respective centres.
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Capital Small Finance Bank Unlisted Shares details
Midas Corporate Park, IIIrd Floor,
37, G.T.Road, Jalandhar – 144001
Punjab. INDIA
Phone : +91-181-5051111, 5052222
Fax : +91-181-5053333
Email : mail@capitalbank.co.in
CIN : U65110PB1999PLC022634
ISIN : INE646H01017
Lot Size: 50 Shares
Face Value: Rs 10
Capital Small Finance Bank (CSFB) valuation
At current price of around Rs 360 per share, shares of Capital Small Finance Bank (CSFB) are available at market capitalisation of about Rs 1,300 crore.
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Capital Small Finance Bank has been granted Scheduled Status by the Reserve Bank of India vide Notification dated February 16, 2017. It has a diversified loan book comprising of agriculture loans, loans to micro, small and medium enterprises (MSMEs), mortgage loans, personal loans and auto loans, along with a strong focus on agriculture and MSME sector.
Conversion of the Bank to Small Finance Bank has removed the geographical barriers for expansion, resulting in exponential growth of the Bank in all spheres. The bank provides Uninterrupted & Extended Banking Hours, Monday to Saturday (10:00 a.m. to 5:00 p.m.), 2nd & 4th Saturday Holiday, State-of-the-art Branch Interiors, RuPay Debit Card acceptance across 2.49 lakh ATMs, over 50 lakh POS Terminals and on all e-commerce sites, Internet Banking, Mobile Banking, Locker Operation and All kinds of Loans at competitive Interest Rates.
The Bank has 80% of its business in rural and semi urban areas, with priority sector lending of 80.81% of the Adjusted Net Bank Credit as on 31 March 2020. The Bank is extending loans primarily to small borrowers. As on March 31, 2020, 59.46% of the total advances are up to the ticket size of Rs.25 lakhs.
CSFB transitioned from a Local Area Bank to Small Finance Bank with 47 Branches. The bank presently has 170 branches spread across the states of Punjab, Haryana, Himachal Pradesh, Rajasthan, National Capital Region and UT Chandigarh.
Financials
| Particulars | FY 2020 | FY 2021 | FY 2022 |
| Revenue | 458.13 | 511.44 | 578.21 |
| Expenses | 475.71 | 516.51 | 569.83 |
| Net income | 25.38 | 40.78 | 62.57 |
| Margin (%) | 5.54 | 7.97 | 10.82 |
| ROE (%) | 7.72 | 9.51 | 12.95 |
| CAR (%) | 19.11 | 19.80 | 18.63 |
| NPA (%) | 1.25 | 1.13 | 1.36 |
| EPS | 8.18 | 11.98 | 18.22 |
| Dividend (per share) | – | 0.80 | 1.0 |
The bank registered a profit after tax at Rs 93.60 crore in the financial year 2022-23 as against Rs 62.57 crore in 2021-22.
Its total advances 17% from a year ago to Rs 5,507 crore as on March end 2023, while its deposits stood at Rs 6,560 crore, with current and savings deposit share at 42%.
For the previous financial year ending March 2023, the bank’s total business grew by 12% to Rs 12,000 crore.
Capital Small Finance Bank Limited is looking at its total business rising over Rs 14,000 crore by the end of current financial year on the back of growth in its advances led by MSME loans and mortgages.
The Jalandhar-headquartered bank has also plans to expand its branch network by opening 20 more branches in the northern region.
Top shareholders of CSFB
| Name of the shareholder | No. of Shares | Holding (in %) |
|---|---|---|
| Santokh Singh Chhokar | 17,60,000 | 6.18 |
| Pi Ventures LLP | 13,94,400 | 4.90 |
| HDFC Standard Life Insurance co ltd. | 13,94,400 | 4.90 |
| Small Industries Development Bank of India | 13,49,650 | 4.74 |
| ICICI prudential life insurance co. ltd. | 13,22,400 | 4.64 |
| Rashpal Singh Virk | 8,97,729 | 3.15 |
| Balbir Singh | 8,62,400 | 3.03 |
| International Township Developers Pvt Ltd. | 5,70,080 | 2.00 |
| Avtar Singh Samra | 4,16,000 | 1.46 |
| Gurinder Mann | 3,91,111 | 1.37 |
| Total Outstanding shares | 2,84,80,743 | 100 |
Small Finance Bank Industry
Rating agency ICRA expects small finance banks to grow at a compounded annual growth rate of 25% to 30% led by diversified loan growth, deposit mobilization, improving asset quality and better return on equity.
Small finance banks can undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections.
It may include small business units, small and marginal farmers, micro and small industries and unorganized sector entities.
Capital Small Finance Bank Ranked amongst India’s 100 Best Companies to work for 5 consecutive years.
Outlook:
The bank has been growing rapidly in recent years, and is well-positioned to continue to grow in the future.
Capital Small Finance Bank will expand its lending and deposit base to strengthen its capital position.
The total business of the Capital Small Finance Bank has crossed Rs 7,900 crore with over 6,90,000 accounts. The business of the Bank is expected to grow to Rs 18,000 crores by 31 March 2023 with 265 number of Branches. The book value as on 31 March 2020 was Rs 120.
The Bank is providing safe, efficient and service oriented repository of savings to the local community while reducing their dependence on moneylenders by making need based credit easily available.
Capital SFB has all the right ingredients such as a low-cost liability franchise, low GNPAs, high CASA ratio, diversified product profile and a stable management team, that are required to be successful in the Indian banking space.
Comparable competitors of Capital Small Finance Bank like AU Small Finance Bank, Equitas Small Finance Bank command rich valuations.
Latest news and updates-
Max Life Insurance Company Ltd, a subsidiary of Max Financial Services, has picked a 2.99% stake in Capital Small Finance Bank for Rs 49.5 crore.
Max Life Insurance has been allotted a total of 1.06 million shares of a face value of Rs 10. Additionally, a premium of Rs 458 per equity share has been paid. The pre-money valuation of Capital Small Finance Bank is Rs 1,603 crore, while the post-money valuation is Rs 1,652.5 crore.
The investment is expected to increase the bank’s capital adequacy ratio (CAR) to 20.77%.
Punjab-based lender Capital Small Finance Bank said it has raised ₹84 crore equity capital from mid-market private equity (PE) firm Oman India Joint Investment Fund (OIJIF), which will hold a 9.9% stake in the bank. OIJIF is co-sponsored by State Bank of India and State General Reserve Fund of Oman.
The funding round also saw participation from Bengaluru-based PE fund, Amicus Capital Private Equity and Amicus Capital Partners India Fund, which had invested ₹38 crore in June and ₹5 crore, respectively, taking the total fund raise of the lender to ₹134 crore. Existing investor, Pi Ventures LLP also participated in the round.
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