Capital Small Finance Bank Ltd. IPO

We are regulated by RBI and commenced operations as India’s first small finance bank in 2016 pursuant to RBI’s approval dated March 4, 2016. We offer a range of banking products on the asset and liability side, in all the states we operate in, i.e., Punjab, Haryana, Delhi, Rajasthan, ... Himachal Pradesh and Union Territory of Chandigarh, with our asset products primarily including agriculture loans, MSME and trading loans and mortgages. We focus primarily on the middle-income customer segments through our presence primarily in Punjab, Haryana, Rajasthan, Delhi, Himachal Pradesh and Union Territory of Chandigarh. We have an experience of over two decades in the banking industry, having been incorporated in 1999. As on the date of this Red Herring Prospectus, our Bank does not have any subsidiaries. Read more

Our Bank was incorporated as ‘Capital Local Area Bank Limited’ on May 31, 1999 at Phagwara district Kapurthala, Punjab, as a public limited company under the Companies Act, 1956, and was granted a certificate of incorporation by the Registrar of Companies, Punjab, Himachal Pradesh and ... Chandigarh. The name of our Bank was subsequently changed to ‘Capital Small Finance Bank Limited’ pursuant to a shareholders’ resolution dated April 2, 2016, to reflect the change in status of our Bank from a local area bank to a small finance bank pursuant to Reserve Bank of India approval dated March 4, 2016, and a fresh certificate of incorporation was granted by the RoC on April 15, 2016. Our Bank commenced its business pursuant to a certificate of commencement of business issued by the Registrar of Companies, Punjab, Himachal Pradesh and Chandigarh dated August 12, 1999.

Despite various measures taken by the government to boost financial penetration in India, a significant percentage of the country’s population is still without access to financial services. The objectives of setting up of small finance banks were to further financial inclusion by provision ... of savings vehicles, and supply of credit to small business units, small and marginal farmers, micro and small industries and other unorganised sector entities, through high technology-low-cost operations. With a similar objective to encourage competition and enhance the easy availability of financial services to the population, RBI introduced various guidelines such as the ’Guidelines for Licensing of Payment Banks’, in November 2014, the ‘Operating Guidelines for Payment Banks’, in October 2016 and the ‘Guidelines for ‘on-tap’ Licensing of Small Finance Banks in the Private Sector’, in December 2019. As of July 2021, the RBI had awarded SFB licenses to 12 institutions. Read more