For future capital needs, Capital Small Finance Bank plans to use the proceeds from the offer to increase its tier-I capital base. Tier I capital was $4.46 billion as of June 2021.
The Securities and Exchange Board of India (Sebi) has received a draught red herring prospectus from Capital Small Finance Bank, which is looking to raise funds via an IPO (IPO). Up to 3.84 million existing shareholders and promoters are selling their shares in the initial public offering (IPO) worth 450 crores.
In order to fulfill the bank's future capital needs, the proceeds of the offer will be used. The company's tier I capital base was $4.66 billion as of June 2021. Its weighted assets ratio (capital to risk) was 21.12 percent. Customers in the middle-income bracket are the primary focus of the lender's business strategy. SIDBI, PI Ventures LLP, OIJIF II, Amicus, ICICI Prudential, and HDFC Life are a few of the many institutional investors and financial institutions that have put money into it. According to a report released in June 2021, deposits had surpassed the previous year's total of 46.87 billion. There were gains of 36.42 billion this year, compared to a loss of 31.45 billion in 2012.
Net interest income reached 570.49 crores in the June quarter, up 20 percent on the year before. The company had a profit of 12.18 crore, up from a loss of 6.8 crores. From 1.27 percent to 1.44 percent, the percentage of non-performing assets has increased. It was 10.40 crore instead of 8.78 crores in provisions and contingencies, which was an increase. As a result, the CASA/37.21 percent ratio was 40,48 percent higher.