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CAPITAL SMALL FINANCE BANK LIMITED

Jan 20, 2020 351

HISTORY:

Capital Small Finance Bank Limited, the first Indian Small Bank, started operations on April 24, 2016. Capital Bank Local Bank, along with nine other entities, received approval in principle from the Reserve Bank of India. India to create.  On September 16, 2015.Capital Local Area Bank, the country's largest Local Area Bank, prior to the conversion to 'Small Finance Bank' has been in operation for the past 16 years with excellent performance in all spheres. The Bank has been operating in three contiguous districts of Jalandhar, Kapurthala and Hoshiarpur in Punjab for the first 13 years. In January 2013, the Reserve Bank of India granted approval for expansion in the Bank's area of ‚Äč‚Äčoperation to two more districts of Ludhiana and Amritsar in Punjab.


The Bank was a pioneer in bringing modern banking facilities to rural areas at low cost. From day one, the 7-day branch was introduced with extended hours. The approach of serving the common man and the advantages of the local touch has given the Bank a competitive advantage over other banks operating in the region. In a short time, most branches become market leaders of their respective centers. The Bank is providing a secure, efficient and service-oriented savings repository to the local community, while reducing its reliance on lenders by making credit based on needs readily available.

The Bank moved from a Local Area Bank to a Small Business Bank with 47 branches. Since then, 22 new branches have been put into operation, with a total of 69 branches (32 rural, 27 semi-urban, 7 urban and 3 metropolitan). During the current year, another 7 branches will be operational.

The Bank's total business has now crossed Rs.3590 crores with more than 4,17,000 accounts. The Bank maintains 80% of its business in rural and semi-urban areas, with Priority Sectoral Loans of 81.28% of Adjusted Net Banking Credit as of March 31, 2016. The Bank is providing loans mainly to small borrowers and 57, 50% Advances are up to the ticket size of Rs.25 lacs as of March 31, 2016.

The Bank's conversion into the Small Business Bank has removed the geographical barriers to expansion. This will lead to an exponential growth of the Bank in all spheres. The Bank's business is expected to grow to Rs.12,000 crores by March 31, 2021.

Director:  RAKESH SONI