National, May 09, 2024: Capital Small Finance Bank Ltd, India’s first small finance bank to commence operation in 2016 has declared its Q4-FY 2024 and Financial Year 2024 results today.
Mr. Sarvjit Singh Samra, MD & CEO of Capital Small Finance Bank, said, “India is one of the fastest-growing economies in the world, having clocked 5.9% average gross domestic product growth over the past decade (2015-2024). Growth in India is projected to remain strong at 6.9 per cent in FY25. India is aspiring to reach high middle-income status over the coming period. Amidst this economic landscape, Bank is strategically positioned to capitalize on the rise of the middle-income segment.
We are a middle income group segment lender and our endeavour is to be the primary banker of the borrower. We are well diversified with each segment witnesses’ multiple cycles. The portfolio comprises of 37% agriculture, 26% mortgage and 19% MSME and trading book. We are a secured lender with 99.9% secured book.
Our retail focused liability franchise had a high share of CASA of 38% and the industry leading asset quality signified underwriting strength. The strong performance showcased consistently improved profitability and return ratios.
The sturdy performance, post transition to SFB, represented by 5 year CAGR of 19% in gross advances, 15% in deposits and 42% in PAT, has laid a solid foundation for accelerated growth. Bank offers a range of banking products on the asset and liability side. It targets to be the primary banker to its customers and endeavour to achieve this objective through a mix of (i) suite of product offerings; (ii) customer service orientation; (iii) deeply entrenched physical branch network; and (iv) evolving digital channels.”
Sharing his view on the future growth outlook Mr. Sarvjit Singh Samra said, “Going forward, we are following a strategy that will enable us to organically grow our loan book, expand our branch network and leverage technology to optimize our operations. We are targeting to achieve a loan portfolio growth ranging from 22% – 24% in FY25 while delivering ROA of ~1.4%.”
About Capital Small Finance Bank
Capital Small Finance Bank (CAPITAL SFB) is a bank headquartered at Jalandhar, Punjab, India. 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 is presently having 177 branches spread over 5 states and 1 UT. The core strategy of the Bank is to build a retail focused business model basis customer relationship based banking approach, diversified & secured lending practices with special emphasis on rural and semi urban geographies and Middle Income Group segment.
