Capital Small Finance Bank Pre IPO Review &
Analysis
Capital Small Finance Bank IPO Review, Allotment Status,
Subscription, Price, Date & More.
Let’s have a detailed review of the company and analytics of
the Capital
Small Finance Bank IPO release date, IPO offer price, subscription, Capital Small
Finance Bank IPO allotment, grey market price and other details like the
company’s background, its financial positions, and its other related things.
Summary of Capital Small Finance Bank
Capital Small
Finance Bank Limited started its operations as India's 1st Small Finance
Bank on April 24, 2016 after conversion from a 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 a low cost. The Bank introduced 7-Days 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 became market leaders of their respective centers.
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.
The Bank transitioned from a Local Area Bank to Small
Finance Bank with 47 Branches. In a short span, 103 new Branches have become
operational, taking the total number of Branches to 150. After establishing a
strong footprint in the state of Punjab, the Bank has now started expansion to
the states of Delhi, Haryana, and Rajasthan along with Union Territory of
Chandigarh.
Capital Small
Finance Bank has been granted Scheduled Status by the Reserve Bank of India
vide Notification dated February 16, 2017.
The total business of the Bank has crossed ₹ 7,600
crores with over 6,90,000 accounts. The Bank has 80% of its business in rural
and semi urban areas, with priority sector lending of 81.28% of the Adjusted
Net Bank Credit as on March 31, 2019. The Bank is extending loans primarily to
small borrowers. As on March 31, 2019, 54.10% of the total advances are up to the
ticket size of ₹ 25 lacs.
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 business of the Bank is expected to grow
to ₹ 18,000 crores by March 31, 2023 with 265 number of Branches.
Products and Services of Capital Small Finance Bank:
- Savings account
- Current Account
- Term Deposits
- Loans
- NRI Banking Services
(Current/Savings)
Strength of Capital Small Finance Bank:
- Intellect design Arena Ltd the
world’s first full-spectrum banking and financial products company for the
digital age announced its partnership with the Capital Small Finance
Bank.
- Now the bank will deliver Digital
Core banking, trade Finance, Debt Management, e-banking, Payments, Treasury,
Alerts, Tablet Banking, Smart Brach, Liquidity Management etc. through the
Global consumer banking division of Intellect.
- As the company mainly focus in rural area So Bank has
80% of its business in rural and semi urban areas, with priority sector lending
of 99.30% of the Adjusted Net Bank Credit.
- The Bank is extending loans primarily to small
borrowers. As on March 31, 2018, 52.48% of the total advances are up to the
ticket size of ₹ 25 lacs.
- It’s a one-stop Financial Hub in
rural and semi urban areas with uninterrupted & Extended banking Hours in
whole week.
Industry overview:
- 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.
- Asset quality indicator of small finance bank is also
improved with gross NPA declining to 5.8% from 9.0% in year 2018.
- 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 bank has crossed business of ₹ 6,700
Crore with over 6,20,000 accounts and most of their business came from rural
and semi urban areas.
Awards & Achievements of Capital Small Finance Bank:
- Company is accredited with ‘ICAI Award for Excellence
in Financial Reporting’ for two consecutive years.
- Capital Small
Finance Bank Ranked amongst India’s 100 Best Companies to work for 5
consecutive years.
- Pioneer in bringing state-of-the-art
banking facilities in rural areas at a low cost
- Promoting Financial Inclusion by
providing easy access to masses to banking services to the masses
- Extension of banking services to the unbanked rural
villages.
- 7 Day Branch Banking from day one with extended and
uninterrupted banking hours.
- One-Stop Financial Hub in rural and semi urban areas.
- Contribution to economic development
and employment generation in the area
- Surpassed National Targets in
Priority Sector, Agriculture and Weaker Section Advances
- Average Business per branch of ₹ 48 Crores.
- Accredited with 'ICAI Award for
Excellence in Financial Reporting' for two consecutive years
- Ranked amongst India's 100 Best Companies to work for
5 consecutive years.
- RuPay Debit Card acceptance across
2.40 lac ATMs, over 27 lac POS Terminals and on all e-commerce sites
Financial Review of Capital Small Finance Bank:
- Total Deposits of the Bank increased to ₹ 3667.26
crores as against ₹ 2375.21 crores as on March 31, 2017 resulting growth of
54.4% in 2 yrs.
- Company’s total asset has increased by 58.81% in 2
year to breach the value of ₹ 4321.20 Cr. in Year 2018-19.
- Net NPA of company has grown by
approx. 56.9% in previous year.
- Net worth of company has reached to ₹ 250.32 Cr. in
Financial Year 2018-19 as against 163.23 Cr. in Year 2016-17 shows the growth
of approx. 31.59 %.
- Company has recorded Net Profit of ₹ 9.41 Cr. this
year and also decided to pay dividend of ₹ 2.22 per share.
- This year Credit deposit ratio of company is 71.14%
and return on equity 11.13%.
Capital Small
Finance Bank IPO Allotment Status, Subscription, Price, Date & More.
Capital Small
Finance Bank IPO date has not been released yet. Once the IPO date has been
issued, the subscription details will be updated regularly. The Allotment
status will be announced about 3-4 weeks of the IPO issue date. The price band
of the IPO will be known only after the offer price of the IPO issues is known.
One can know about the price band of the IPO in about a week.
Planify view over
Capital Small Finance Bank:
- Bank is Pioneer in bringing state-of-the-art banking
facilities in rural areas at very low cost with 7-day branch banking facilities
from 1st day of its operation.
- Its one-stop financial hub in rural and semi urban
areas operating in more than 142 branches with average business of Rs. 48 Cr.
per branch.
- Company is accredited with ICAI award for excellence
in Financial Reporting for two consecutive years and ranked amongst India’s 100
Best Companies.
- In an Interview company’s chief operating officer
Munish Jain said Bank is planning to open 220 branches by the end of FY 2021
which means CAGR growth of 33.8% in bank’s balance sheet over next 3 years.
- Financial growth of company is very good, The Bank
has a consistent track record of healthy dividend pay-outs since day one of its
inception.
- The Bank is in an exponential growth phase and
company is continuously reporting profit and book value of company is also
growing with CAGR of approx. 15.7% since 2016 after analysing overall aspects
of the bank we Rate this bank 4/5.
Want to buy Capital
Small Finance Bank Unlisted Shares?
Come right to us!
- Or Call Us On - (+91) 706-556-0002
Investment Disclaimer
Investment in Pre-IPO Equity is subject to market risk. The investor should take an informed decision before investing in any company.
Investment in Pre-IPO Equity is subject to market risk. The investor should take an informed decision before investing in any company.
Planify
Disclaimer
An investment made on the Planify Platform is made through pooled investments that acquire shares of private companies and are not a direct investment in these companies.
An investment made on the Planify Platform is made through pooled investments that acquire shares of private companies and are not a direct investment in these companies.
Transaction
Disclaimer
Planify facilitates the smooth execution of the transaction. If in case, Planify is not able to provide or supply the requisite agreed inventory, it will return the transaction amount in the same account through which the funds are received.
Planify facilitates the smooth execution of the transaction. If in case, Planify is not able to provide or supply the requisite agreed inventory, it will return the transaction amount in the same account through which the funds are received.
No comments:
Post a Comment