PE-backed Fincare Small Finance Bank eyes Rs 100 billion assets by FY21

Private equity-backed Fincare Small Finance Bank (Fincare SFB) has set a target to reach assets worth Rs 100 billion, with 200 large and 700-800 small branches by 2020-21.

Rajeev Yadav, the lender’s managing director and chief executive officer, said as of January, the company had a loan book of Rs 18 billion and had raised deposits worth Rs 6 billion. The lender had commenced its banking operations in July 2017.

“Currently, we have the capital for growth. Our next round of fundraising will be through an initial public offering (IPO),” Yadav said, adding that it would be done before 2020. The lender is planning to raise about Rs 5 billion through IPO, which would support its Rs 100 billion target. It expects deposits to grow to Rs 85 billion by 2020-21. Fincare has raised Rs 5 billion from PE investors, including TA Associates, TrueNorth, Tata Opportunities Fund and LeapFrog Investments. 

Several financial institutions, including SIDBI, Kotak Mahindra Life Insurance and Edelweiss Tokio Life Insurance have also invested in the lender. The investors hold about 85 per cent of the firm’s stake. Yadav claimed Fincare SFB’s net worth to be about Rs 5-5.5 billion and expected it to increase to Rs 15-20 billion. The lender is expected to get scheduled status in the next two months, he added.