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 pioneered in bringing modern banking facilities to the rural areas at low cost. The Bank introduced 7-Day 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 become market leaders of their respective centres. 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, 109 new Branches have become operational, taking the total number of Branches to 157. After establishing a strong footprint in the state of Punjab, the Bank has now started expansion to the states of Delhi, Haryana, 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 Rs.7,900 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 80.81% of the Adjusted Net Bank Credit as on March 31, 2020. The Bank is extending loans primarily to small borrowers. As on March 31, 2020, 59.46% of the total advances are up to the ticket size of Rs.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 Rs.18,000 crores by March 31, 2023 with 265 number of Branches.