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Fincare Small Finance Bank is planning to raise Rs 250-300 crore capital to fund its expansion plans in alendar year 2019.
Disclosing this at a press conference to announce the launch of its operations in Hyderabad here on Friday, Rajeev Yadav, Managing Director and Chief Financial Officer, Fincare, said various options, including private equity, would be explored to mobilise funds.
With over Rs 500 crore capital and a Capital to Risk Weighted Assets Ratio (CRAR) of 24 per cent, the Bengaluru-based small finance bank is “well capitalised’’ now, but would need capital for expansion.
“We are targeting assets under management of Rs 10,000 crore by 2021, from a current book size of about Rs 3,000 crore, and to take the number of customers from 1.4 million (in 11 states and one union territory) to 4 million, besides expanding our reach,’’ Yadav said.
With the commencement of operations in Hyderabad, one-and-a-half-year-old Fincare is now present in all the metros through over 500 banking outlets.
It is also planning to launch new products such as two-wheeler loans, affordable housing advances, besides expanding its footprint in cities such as Pune, the National Capital Region and Bhopal over the next few months.
At present, Fincare has a gross loan book of Rs 2,850 crore and Rs 1,450 crore deposits. “By the end of the year, this is expected to go up to Rs 3,500 crore and Rs 2,000 crore respectively,’’ the CEO said.
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