Amongst the 10 entities that were given in-principle approval in September 2015 to start a small finance bank (SFB), Capital Local Area Bank was the only banking entity.
8 of the 10 candidates making the cut for establishing a little finance bank were from the microfinance space, while one was a non-banking finance company. Capital Local Area Bank began running as Capital Small Finance Bank (Capital SFB) with impact from April 24.
In the financial year 2015-16, Capital SFB clocked 15 per cent increase in net interest income at? 54.61 crore in FY15). 14.32 crore (?
Provisions (aside from tax) and contingencies (internet) stood at? 1.37 crore, versus write-back in arrangements of? 1.56 crore in the year-ago period.
According to the bank’s filing with the BSE, gross non-performing assets (NPAs) and net NPAs edged up to 0.73 per cent (0.39 per cent in FY15) and 0.45 per cent (0.13 per cent), respectively.
The bank presently has 57 branches in Jalandhar, Kapurthala, Hoshiarpur, Ludhiana and Amritsar districts in Punjab. It is planning to include 19 more branches in Punjab in the existing fiscal year.