BIZ-FINCARE

Fincare Small Finance Bank aims to raise Rs 250-300 cr: CEO

Hyderabad, Jan 18 (PTI): Fincare Small Finance Bank

(SFB) Friday said it is aiming at assets under management

(AUM) of Rs 10,000 crore by 2021, even as it looks to raise

about Rs 250-Rs 300 crore in the next 12 months, managing

director and chief executive of the company Rajeev Yadav said

Friday.

Fincare announced this during its entry into

Hyderabad with the launch of its branch at Banjara Hills.

Fincare SFB is targeting assets under management (AUM)

of Rs 10,000 crore by 2021, expecting to be entirely funded by

deposits, Yadav told reporters here.

"From 1.4 million customers we have today we want to

go to a four-million customer base. We want to build from 500-

plus banking outlets to 5,000," he said.

The capital adequacy ratios were fairly good at 24

per cent currently, Yadav said.

"We look forward toraise another Rs 250-Rs 300 crore

in the next 12 months to fund the growth of the bank. As we

grow, we need to bring in more capital since the bank growth

rate is good," he said.

These would be raised through various provisions but

generally these were private equity funds, both domestic and

foreign, he said.

Fincare SFB also plans to launch new products such as

2-wheeler loans and affordable housing loans in the immediate

term, in addition to expanding its footprints in cities such

as Pune, national capital region and Bhopal over the next few

months.

Fincare started its SFB operations in July 2017, one

of the 10 entities that were granted RBI approval in 2015.

As of September 30, 2018, the bank had gross assets

under management (AUM) of Rs 2,899 crore.

The bank also had a deposits base of Rs 1,445 crore,

comprising over 40 per cent retail deposits.

Reacting to a query, Yadav said, "By the end of this

fiscal, we look forward to a loan book Rs 3,500 crore

andabout Rs 2,000 crore in deposit book and 5,500 staff

strength from the current 5,200."

As of December 2018, Fincare SFB serves over 14 lakh

customers in eleven states and one union territory across the

country.