SSFB, which started its banking operations in 2017, has a large presence in three states including Maharashtra.
The fund would be raised through share sale on a private placement basis to the existing and new investors, he said, adding that the promoters' stake in the bank will come down to about 27 per cent from the current 29.5 per cent with this round of capital raising.
The process is at an advanced stage and the money should flow in before the end of the current fiscal, he added.
The existing investors include the likes of HDFC Ltd, International Finance Corporation, IDFC Bank and HDFC Life Insurance.
The bank with a customer base of 10 lakh plans to enter Uttar Pradesh and will soon open a branch in Varanasi. Besides, it also plans to expand its branch network in Gujarat, Madhya Pradesh, Karnataka and Delhi.
The bank entered Delhi by opening two branches in the city a few days ago.
With an asset base of Rs 2,500 crore and deposits over Rs 1,250 crore, the bank expects to close the year with the profit of Rs 90 crore.