Capital Small Finance Bank Limited IPO

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Launched as India’s inaugural small finance bank (SFB) in 2016, following the Reserve Bank of India’s (RBI) authorization on March 4, 2016, our institution has carved a distinctive niche in the banking sector. We offer a comprehensive suite of banking products and services across both asset and liability spectrums in the states of Punjab, Haryana, Delhi, Rajasthan, Himachal Pradesh, and the Union Territory of Chandigarh. Our portfolio spans across agricultural loans, MSME and trading loans, and mortgage loans, cumulatively amounting to ₹49,490.93 million as of September 30, 2023.

Decades of Expertise and Strategic Focus

Established in 1999 and regulated by the RBI, they stand as one of the two non-NBFC microfinance entities awarded the SFB license in 2015. With over two decades of experience, there core strategy pivots on fortifying the retail-focused banking franchise. they aim to facilitate access to affordable credit within their operational states, primarily catering to the middle-income group segment with a special focus on rural and semi-urban areas. their operational strategy has enabled us to broaden our footprint significantly, thereby enhancing our customer base and operational metrics.

Geographical Presence and Customer Base

As of September 30, 2023, our network spans five states and one Union Territory, comprising 173 branches and 175 ATMs. A significant 76.30% of our branches are strategically located in rural and semi-urban areas, covering 24 districts and serving 75.75% of our total customer base. This geographical spread underscores our commitment to reaching underserved segments, providing them with limited or no access to formal banking channels.

Customer-centric Approach and Innovation

Their mission to become the primary banker for their customers is pursued through a comprehensive suite of product offerings, customer service orientation, an extensive physical branch network, and evolving digital service delivery channels. We also generate fee income from a variety of products and services, including forex and money transfers, remittances, safe-deposit lockers, and insurance products, among others.

Future Outlook

They remain focused on organic growth, particularly through secured lending, and on continuing their expansion into new and contiguous geographies. they strategic focus on building a granular loan book, combined with their cost-effective funding approach, positions us well for sustained growth and success in the competitive banking landscape.

In summary, the journey from a local area bank to a leading small finance bank encapsulates a commitment to inclusive banking, strategic expansion, and a robust financial performance, paving the way for a promising future in the Indian banking sector.

Objects of the Capital Small Finance Bank Limited IPO:

The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting our Bank's Tier-I capital base to meet the Bank's future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses in relation to the Offer. The Bank expects to receive the benefits of listing the Equity Shares on the Stock Exchanges. Total number of shares issues :- Fresh Issues :- 9,615,384 Offer For Shares :- 1,561,329.

Capital Small Finance Bank Limited IPO Details:

Open Date: Feb 07 2024
Close Date: Feb 09 2024
Total Shares: 11,176,713
Face Value: ₹ 10 Per Equity Share
Issue Size: 523.07 Cr.
Lot Size: 32 Shares
Issue Price: ₹ 445 - 468 Per Equity Share
Listing At: NSE,BSE
Listing Date: Feb 14 2024

Promoters And Management:

Sarvjit Singh Samra is the Managing Director and Chief Executive Officer of the Bank. He holds a bachelor’s degree in arts and a master’s degree in business administration from Guru Nanak Dev University. He has over 36 years of experience in the banking and financial industry spread over various roles, including senior positions. He has been associated with the Bank since its inception and has been instrumental in the conversion of the Bank from a local area bank to an SFB. He has previously served as the managing director of various asset financing companies. He has also previously served as the part-time chairman for over three years and has been serving as the Managing Director and Chief Executive Officer over 20 years, including 13 years in the erstwhile Capital Local Area Bank. Munish Jain is the Executive Director and Chief Financial Officer the Bank. He holds a bachelor’s degree in commerce from Guru Nanak Dev University. He is a fellow member of the Institute of Chartered Accountants of India and a fellow member of the Institute of Company Secretaries of India. He has over 23 years of experience in the banking sector, including in finance, compliance, treasury, strategic decision making and execution of strategic decisions. He has completed programmes on leadership of banks and financial institutions, advanced corporate finance and risk modelling and management from the Indian Institute of Management, Ahmedabad. He has also completed a programme on the International Financial Reporting Standards from the Reserve Bank of India and the ‘Strategem – Strategy Meets Leadership Programme’ from INSEAD, Fontainebleau, France. He has previously served as the company secretary of the Bank and has been associated with the Bank since 2000. He was appointed as the Chief Operating Officer in 2014. Presently, he is the Chief Financial Officer and was appointed as the Executive Director of the Bank with effect from August 28, 2023. Srinath Srinivasan, a Non-Executive Director at the Bank, is nominated by the Oman India Joint Investment Fund II. He possesses a Bachelor’s in Engineering from the National Institute of Technology, Karnataka, and a Master’s in Business Management from the Asian Institute of Management, Manila. His executive education includes leadership skills, Blue Ocean Strategy, luxury brand management, and an independent directors certification. With a career that spans leadership roles at Rand Merchant Bank and Reliance Capital, Srinivasan has been instrumental at Oman India Joint Investment Fund Management Company Private Limited, serving as CIO since 2011 and CEO since 2012. He also served on the Indian Venture Capital Association's executive council, highlighting his significant contributions to India’s venture capital landscape.

Financials of Capital Small Finance Bank Limited IPO:

A. Balance Sheet
Particulars ( In Crore ) 2021 2022 2023 6M-FY24
Capital 34 34 34 35
Reserve and Surplus 417 482 576 676
Deposits 5,221 6,046 6,561 7,000
Borrowings 617 498 721 573
Other Liabilities and provisions 83 93 98 106
Total 6371 7154 7991 8391
Cash and Balances with Reserve Bank of India 722 364 463 502
Balances With banks and Money at call and Short Notice 569 655 418 350
Investments 1212 1357 1489 1549
Advances 3727 4635 5429 5784
Fixed assets 87 84 83 81
Other Assets 55 59 110 124
Total 6371 7154 7991 8391
B. Profit & Loss Statement
Particulars ( In Crore ) 2021 2022 2023 6M-FY24
Interest Earned 511 578 676 386
Other Income 46 54 49 29
Total Revenue 557 632 725 415
Interest Expended 313 323 354 215
Operating Expenses 173 196 223 125
Provisions and Contingencies 31 51 55 21
Net Profit 41 63 94 54
No.of Shares 4.50 4.50 4.50 4.50
EPS 9.05 13.89 20.77 12.07
C. Cash Flow Statement
Particulars ( In Crore ) 2021 2022 2023 6M-FY24
Net Profit before Tax 54 84 124 72
Operating profit before working capital changes 90 133 173 86
Decrease/ (Increase) in Term Deposits with other Bank -116 -72 233 107
(Increase)/ Decrease In Investments -160 -145 -133 -62
(Increase) In Advances -437 -926 -819 -359
Increase In Deposits 774 825 514 440
(Increase)/ Decrease In Other Assets 8 -3 -49 -12
Increase / (Decrease)/ In Other Liabilities & Provision 28 -3 8 8
Cash Flow from Operating Activities 187 -190 -73 208
Tax -13 -21 -34 -19
Purchase of Fixed Assets -13 -13 -20 -7
Proceeds from Sale of Fixed Assets 0.51 0.34 0.10 0.05
equity shares 1 1 2 50
Net from new issue of Unsecured Redeemable 31 23 26 23
Net Borrowings/ Refinance 164 -141 197 -171
Dividend Payment 0 -3 -3 -4
Net Cash Flow 359 -344 94 79

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Capital Small Finance Bank Limited 676 94 20.77 22.5 468 2,108
IDFC First Bank 22,728 2,485 3.75 19.5 83.2 58,842
AU Small Finance Bank Ltd 8,205 1,428 21.42 26.1 619 41,421
Equitas Small Finance Bank Ltd 4,162 574 5.16 14.8 103 11,634
ESAF Small Finance Bank Ltd 2,854 302 6.73 11.9 70 3,601
Suryoday Small Finance Bank Ltd 1,184 78 7.32 11.3 165 1,753
Ujjivan Small Finance Bank Ltd 4,165 1,100 5.63 9.1 58.5 11,450
* All the data is as per FY23.

Registrar of Capital Small Finance Bank Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Capital Small Finance Bank Limited MIDAS Corporate Park, 3rdFloor, 37, G.T. Road, Jalandhar 144 001, Phone: +91 181 5051111 Email: Website:

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