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Capital Small Finance Bank Limited IPO Review

Capital Small Finance Bank pvt ltd, their promoter, Mr. Sarvjit Singh Samra, who also serves as their Managing Director and Chief Executive Officer, is a self-made entrepreneur with more than thirty years of experience in banking and financial services. Additionally, Their Board is strengthened by a skilled management team comprising individuals with diverse backgrounds in the banking & financial services industry. Furthermore, all their Key Management Personnel & senior executives, except for their Company Secretary and Compliance Officer, have been with them since their inception as the local area bank.

capital small finance bank limited ipo. They've been in the banking business, starting in 1999. They follow rules set by the RBI and are one of only two microfinance institutions, not classified as NBFCs, to be granted an SFB license in 2015. Their main plan is to improve their retail banking business by providing affordable loans in the specific regions they serve, focusing on middle-income individuals in rural and semi-urban areas. Their Strategies are Continue to grow their loan book organically with focus on secured lending, strengthen their liability franchise, Leverage technology and data analytics for scalability and profitable growth, they expect to serve more customers. Their plan is to increase their loan portfolio in these places, aiming to balance it out with their deposits. In these new regions, they introduce loan products to enter the market, which helps them improve the balance between their loans and deposits.

Capital Small Finance Bank Limited Products and Services

capital small finance bank limited aim to become the main bank for their customers, achieving this goal through a combination of their various product offerings, a focus on customer service, a widespread network of physical branches, and the ongoing development of digital service channels. They earn fees from services like foreign exchange and money transfers, providing safe-deposit lockers, selling life and general insurance policies, offering 3-in-1 demat and trading accounts, and other related services. They follow a branch-focused approach, with a strong presence in semi-urban and rural regions. Based in Jalandhar, Punjab, their SFB operations have grown strategically over the years in northern Indian states like Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh, and the Union Territory of Chandigarh. They provide banking services in a connected manner across these areas.

Their Strengths are Retail focused liability franchise with a high share of CASA, Secured and diversified advances portfolio, streamlined credit assessment processes and risk management practices, Customer centric approach and understanding of target customers, Consistent track record of growth with constantly improving operational and profitability metrics.

Financial Overview

financial performance, over the past three fiscal years, according to revised financial statements, the company has recorded a total income/net profit of Rs. 557.27 crore/Rs. 40.78 crore (FY21), Rs. 632.40 crore/Rs. 62.57 crore (FY22), Rs. 725.48 crore/Rs. 93.60 crore (FY23). For the first half of FY24 ending on September 30, 2023, it achieved a net profit of Rs. 54.39 crore. This small finance bank mainly operates in the northern region but plans to expand its presence across India in the future by opening more branches. It has consistently shown growth in both revenue and profits during the periods reported. Considering the projected earnings for FY24, the bank's stock appears to be priced quite high. Investors who are well-informed may consider investing for potential long-term gains.