Suryoday Small Finance Bank to raise Rs 2 bn capital from new investors

Navi Mumbai based Suryoday Small Finance Bank Ltd (previously known as Suryoday Micro Finance Ltd), plans to raise Rs two billion capital from new and existing investors througha preferential issue.

SSFB, which started its banking operations last year in January 2017, is backed by marquee investors like IFC and HDFC, among others.

"We will be raising Rs two billion in the next six months. As a new bank, we need a strong capital to manage any eventuality. We are in the process of hiring an investment banker," said Baskar Babu, managing director and chief executive officer of SSFB.

The bank's net worth as of March 2018 is Rs 5.40 billion (provisional) with an asset book size of Rs 16.60 billion, deposit book size of Rs 8.30 billion and capital adequacy ratio of 37.9 per cent.  

SSFB has a network of 26 full-service bank branches and 215 doorstep banking offices across Maharashtra, Tamil Nadu, Odisha, Gujarat, Karnataka, Maharashtra and Puducherry. It is planning to foray into the state of Uttar Pradesh this year.

The small finance bank also has plans to launch 400 plus banking outlets in a span of 12 months, out of which 50 plus are proposed in Odisha. It plans to convert all its 215 micro finance branches into banking outlets.

“We have completed a successful year with a YOY growth of 37 per cent with a deposit base of more than Rs 8.20 billion and a gross loan portfolio of 16.60 billion. In the first year of operations, our endeavour was to provide simple products to cater to credit, savings and the insurance needs of the customers," he added.

"we provide doorstep banking to our customers and our endeavour is to move from being lenders to wealth creators for them. In terms of our business approach, we plan to build a healthy book, and in the process want our customers to grow with us," he said.

Last year the bank has imparted financial literacy programs to over 65000 people across the country and plans to reach out 0.1 million more people this year.  

The bank has set a target to clock about Rs 0.65 billion profits after tax this fiscal.