According to a statement released on Monday, Fincare Small Finance Bank (Fincare SFB) Ltd has received approval from the Securities and Exchange Board of India (Sebi) to launch an initial public offering (IPO) with a target valuation of Rs1,330 crore.

Bengaluru-based Fincare Small Finance Bank is a "digital-first" SFB with an emphasis on unbanked and underbanked consumers, particularly in rural and semi-urban areas, and is headquartered in Bengaluru. According to the Reserve Bank of India (RBI), it was one of the ten applicants who were granted clearance to convert from a microfinance institution to a savings and loan association (SFA) under the guidelines for this new class of banks established by the central bank in 2015.

It began conducting banking operations in July of this year. The proceeds from the new share offering will be used to increase the bank's tier-1 capital base in order to fulfill its future capital requirements, according to the company. Approximately 3.46% of total advances were NPAs as of December 2020. The net NPA to advances ratio was 1.88% as of December 2020.