Capital Small Finance Bank Limited is India's first small finance bank, focusing on middle-income customer segments with products like agriculture loans, MSME loans, trading loans, and mortgages. It leverages branch expansions and NBFC partnerships to diversify and expand geographically beyond Punjab to states like Haryana and Rajasthan. The bank has achieved strong deposit growth, with deposits increasing by 20% year-on-year. Recent financial performance highlights include improved asset quality, evidenced by stable margins and a net interest margin of 4% amidst moderated credit growth.

Asset quality remains robust despite flood conditions affecting parts of Punjab, with the bank demonstrating resilience and maintaining gross NPA at 2.70%. The initiatives demonstrate strategic focus on maintaining a high-quality, collateralized loan portfolio.

The partnership with NBFCs is designed to tap into new geographies, enhancing its secured loan portfolio through collaboration while maintaining stringent underwriting standards.

Looking ahead, the bank plans to grow its loan book organically by 20% annually and expand its branch network by 1.5x over the next three years, aiming for significant growth in non-Punjab regions, thus broadening its operational base.