Capital SFB’s PAT Increases To Rs1.12 Bn, 5 Yr CAGR 42%

Leading asset quality with GNPA and NNPA of 2.8% and 1.4% respectively

Sarvjit Singh Samra, MD & CEO of Capital Small Finance Bank

FinTech BizNews Service

Mumbai, May 9, 2024: Capital SFB today announced its Q4 FY24 & Annual results.

Key Highlights FY2024:

[A] Gross Advances stood at Rs6,160 crores

·         5 Year CAGR 19%

·         8% growth Q-o-Q

·         Increases by 12% Y-o-Y

·         More than 99% of secured book

·         Granular loan book with ATS of Rs. 14.2 lacs and 67% of the loan portfolio is with client exposure up to Rs. 25 lacs

·         Well diversified loan portfolio comprising of 37% agriculture, 26% mortgage and 19% MSME and trading book

·         Leading asset quality with GNPA and NNPA of 2.8% and 1.4% respectively

[B] The deposit base stood at Rs. 7,478 crores

·         5 Year CAGR 15%

·         Increases by 14% Y-o-Y

·         Retail deposit constituting 93% of the total deposits

·         CASA ratio of 38%.

·         Consistent Roll Over ratio of Term Deposits (90% +)

[C] Profitability and Operational Efficacies –

·         PAT increases to Rs112 crore, 5 year CAGR 42%

·         19% Y-o-Y and 16% Q-o-Q growth

·         Non Interest Income increased by 36% Y-o-Y

·         ROA increases to 1.3%, 2.5x over FY19

·         The opex to avg assets for FY24 2.95% against 2.90% for FY23

  [D]    Asset Quality and Capital

·       Gross NPA – 2.8%

·       Net NPA – 1.4%

·       Capital Adequacy Ratio – 27.39% 

·       Tier-I Ratio (%) – 22.80%

Sarvjit Singh Samra, MD & CEO of Capital Small Finance Bank, said, “India is one of the fastest-growing economies in the world, having clocked 5.9% average gross domestic product growth over the past decade (2015-2024). Growth in India is projected to remain strong at 6.9 per cent in FY25. India is aspiring to reach high middle-income status over the coming period. Amidst this economic landscape, Bank is strategically positioned to capitalize on the rise of the middle-income segment.

We are a middle income group segment lender and our endeavour is to be the primary banker of the borrower. We are well diversified with each segment witnesses’ multiple cycles. The portfolio comprises of 37% agriculture, 26% mortgage and 19% MSME and trading book. We are a secured lender with 99.9% secured book.

Our retail focused liability franchise had a high share of CASA of 38% and the industry leading asset quality signified underwriting strength. The strong performance showcased consistently improved profitability and return ratios.

The sturdy performance, post transition to SFB, represented by 5 year CAGR of 19% in gross advances, 15% in deposits and 42% in PAT, has laid a solid foundation for accelerated growth.  Bank offers a range of banking products on the asset and liability side. It targets to be the primary banker to its customers and endeavour to achieve this objective through a mix of (i) suite of product offerings; (ii) customer service orientation; (iii) deeply entrenched physical branch network; and (iv) evolving digital channels.”

Sharing his view on the future growth outlook Mr. Sarvjit Singh Samra said, “Going forward, we are following a strategy that will enable us to organically grow our loan book, expand our branch network and leverage technology to optimize our operations. We are targeting to achieve a loan portfolio growth ranging from 22% - 24%  in FY25 while delivering ROA of ~1.4%.”