Fincare Small Finance Bank (SFB) said on Friday that it hopes to do a total business of Rs 5,500 crore and open 550-600 banking outlets by the end of the fiscal.
Fincare Small Finance Bank (SFB) said on Friday that it hopes to do a total business of Rs 5,500 crore and open 550-600 banking outlets by the end of the fiscal. The small bank is targeting a gross loan asset of Rs 3,500 crore and a deposit base of Rs 2,000 crore in the next three months.
The bank’s gross loans portfolio stood at Rs 2,899 crore as on September 30, 2018. The bank has also garnered deposits worth Rs 1,455 crore as on September 30, 2018, a growth of 383% year-on-year.
Rajeev Yadav, MD & CEO of Fincare SFB, said that there are enough opportunities for small banks as a large section of the population is under-penetrated and under-served. “We have a 99% growth rate for the last 12 months and there is enough potential for us to grow 40-60% in the next few years. Fincare SFB offers doorstep service, digital solutions and better deposit rates,” he added.
On the loan side, Fincare expects growth to come from the MSME segment as they are currently financially excluded and there are multiple players in the MFI segment.
The bank estimates the number of banking correspondents to increase to 400 from 150 currently.
He was speaking to reporters after inaugurating its first banking outlet in Kochi. Yadav added that Fincare would open 5-10 outlets in Kerala with the next ones coming up in Kozhikode and Trivandrum.
Fincare offers fixed deposits, with interest rates of up to 9% per annum, going up to 9.5% per annum for senior citizens, and savings accounts with interest rates of up to 7% per annum.
Also, Kerala being the highest receiver of overall remittances to India is a potential market for the bank’s NR services that offers deposit rates of 9% per annum, highest among banks, he added.
The bank has a target of reaching a gross loan assets of Rs 10,000 crore, 4 million customer and 5,000 banking outlets by 2021.
Fincare commenced banking operations on July 21, 2017, and serves over 13 lakh customers in ten states and one Union territory. The bank registered a profit after tax (PAT) of Rs 42 crore in H1 FY19.