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Suryoday Small Finance Bank is a new age bank that went live on 23 January 2017. In the past, it was known as Suryoday Micro Finance. It is among the 10 companies and the only one from Maharashtra to obtain a ’Small Finance Bank’ licence from the Reserve Bank of India (RBI). The bank has high profile institutional investors and private equity investors including ASK, HDFC, IDFC Bank, IFC, Lok Capital, Gaja Capital and TVS Shriram.
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Suryoday Small Finance Bank IPO Price will be announced soon. Amidst plans for the IPO, Suryoday SFB is looking to ramp up its retail banking outlets from current 382 to 600 by March 2020. Apart from newer outlets, the plan includes converting around 210 existing MFI outlets into banking outlets to offer services like deposits. Suryoday SFB currently operates in 10 states and two union territories, servicing over 1.25 million customers.
The bank is looking to grow its assets under management (AUM) from Rs 3,100 crore to Rs 4,500-5,000 crore by the end of fiscal 2019-20. On the other hand, deposits are expected to grow from Rs 1,800 crore now to Rs 3,500-4,000 crore by end of March 2020.
Suryoday SFB intends to tap the small ticket loans in the range of Rs 1 lakh and Rs 3 lakh from small businessmen. Suryoday SFB has already been offering retail loans such as affordable home loans, business loans and commercial vehicle loans for the customers at interest rates of around 10.5 per cent.
The bank will continue to focus on providing banking services and microfinance loans at rates of 21-24 per cent to the unbanked customers and apart from onboarding corporate salary accounts for medium and large corporates.
The bank’s endeavour is to bring the best banking solutions to the ‘banked’, ‘under-banked’ and the ‘un-banked’ sections of the society. The bank offers existing credit products suite of MFI loans, Vikas Loans, Shopkeeper Loans etc. to new and current customers. Offer digital banking as the key account differentiator to customers using the extensive seeding of Aadhar biometric identification system, NPCI’s payment systems and mobile technologies whilst continuing to explore banking through traditional channels. Focus on the unserved and the underserved through innovative banking practices.
Suryoday Small Finance Bank (SFB), which initially provided microfinance loans, has diversified its product offerings to include retail loans such as home loans, commercial vehicle loans, and secured and unsecured loans.
The purpose of small finance banks is to expand access to financial services in rural and semi-urban areas. They offer basic banking services, accept deposits and lend to the underserved sections of society, including small businesses, small and marginal farmers, micro and small industries, and entities in the unorganized sector. It had started its banking operations in January 2017.
Many of the larger small finance banks, such as AU Small Finance Bank Ltd, Equitas Holdings Ltd and Ujjivan Financial Services Ltd, have gone public to raise funds.
- Suryoday Small Finance Bank plans up to Rs 1,000 crore IPO by next year – 13 July 2019
Mumbai-based Suryoday Small Finance Bank (SSFB) is upping the ante in terms of retail banking expansion, ahead of its initial public offer (IPO) next year. Baskar Babu, MD and CEO of the small finance bank (SFB), said that it has planned to raise anywhere between Rs 600 crore and Rs 1,000 crore through the IPO next year.
- Suryoday SFB raises ₹248 crore from DEG, Kotak Mahindra Life Insurance – 3 April 2019
Suryoday Small Finance Bank Ltd has raised Rs 248 crore from a clutch of investors. The fundraise also saw capital infusion from the bank’s promoters and its 13 existing investors, including Sarva Capital, HDFC, IFC, IDFC Bank, Gaja Capital and ASK Pravi. In 2017, the SFB had raised around ₹160 crore. Following the latest round of fundraising, the bank has 20 institutional investors with a healthy mix of institutional investors, development funds and private equity investors.