FINCARE SMALL FINANCE BANK LIMITEDPRE-IPO SHARE
ABOUT FINCARE SMALL FINANCE BANK LIMITED
FINCARE SMALL FINANCE BANK LIMITED was first formed as Banas Finlease Private Limited in 1996. In June 2009, the company ventured into microfinance activities in Gujarat based on the Grameen Bank Joint Liability Group (JLG) model. Then the company was renamed as Disha Microfin Private Limited (Disha) in 2010. In May 2017, Disha Microfin Limited ("the Company") commenced its operations as a small finance bank with effect from21st July 2017. Accordingly, the name of the Company was changed to Fincare Small Finance Bank Limited("the Bank"). In April 2019, Fincare small finance bank received the status of Scheduled Bank.
The Fincare small finance bank’s operation includes retail and wholesale banking activities. These activities primarily include microfinance lending activities to provide financial assistance to women borrowers of economically weaker societies, who are organized as joint liability groups (‘JLG’)primarily in the rural areas of India. Further, it is engaged in providing financial assistance to the borrowers to use the money to augment the household income through loans against the property. In addition, the Bank offers other products, including institutional finance, gold loan, two-wheeler loans, affordable housing loans, and overdraft facilities against fixed deposits or properties.
As on 31st March 2020, Fincare Small Finance Bank has 711 Banking outlets, spread over 177 districts in 19 states/union territories of India. The bank holds a customer base of more than 25.5 Lakhs as of 31st March 2020.
INCORPORATION DETAILS
CIN | U67120GJ1995PLC025373 |
Registration Date | 05 April 1995 |
Category/Sub-category of the Company | Public Company limited by shares |
Address of the Registered office and contact details | 301-306, 3rd Floor, Abhijeet V, Opp. Mayor's Bunglow, Law Garden Road, Mithakhali, Ahmedabad-380006, Gujarat. Tel: 079- 40011000, E-mail- sfbcompsec@fincarebank.com |
Name, Address and Contact Details of Registrar and Transfer Agent, if any | KFin Technologies Private Limited Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad – 500 032 |
PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Name and Description of main products/services | NIC Code of the product/service | % to total turnover of the Company |
Banking and Financial Services | 64191 | 100% |
BOARD OF DIRECTORS
Mr. Rajeev Yadav (Managing Director and ChiefExecutive Officer)
Mr. Pramod KabraChairman and Non-ExecutiveDirector)
Mr. Ravindran Lakshmanan (Nominee Director)
Mr. Sameer Nanavati (Nominee Director)
Mr. Alok Prasad (Independent Director)
Mr. Sunil Gulati (Independent Director)
Ms. Susan Thomas (Independent Director)
Mr. Varun Sabhlok (Independent Director)
Mr. Vinay Baijal (Independent Director)
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
FINCARE SMALL FINANCE BANK LIMITED does not have any subsidiary or associate company.
FINCARE SMALL FINANCE BANK LIMITED UNLISTED SHARE DETAILS
Total Available Shares: | 6,36,10,481 |
Face Value: | Rs. 10 Per Equity Share |
ISIN: | INE519Q08079 |
Pan No. | AABCB6398N |
Lot Size: | 100 Shares |
Last Traded Price | Rs. 95 per share |
Market Capitalization: | Rs. 604.30 Crore |
SHAREHOLDING PATTERN
(As on 31-03-2020)
S. No. | Shareholders’ Name | Number of shares | % of total Shares of the company |
1 | Fincare BusinessServices Private Limited | 5,89,98,716 | 92.75% |
2 | Public Shareholding | 46,11,765 | 7.25% |
| Total | 6,36,10,481 | 100.00% |
INDUSTRY OUTLOOK
Banking has witnessed a significant change in recent times. Owing to the increasing consumer expectancies, regulations, economic changes, and constant competition, modern banking has embraced technology in a big way. Digital platforms, mobile, internet banking, and payments bank have revolutionized the sector in a substantial way.
Financial inclusion got further impetus with the pradhan Mantri Jan Dhan Yojana (PMJDY) which aims to provide at least one bank account for every household.Total bank accounts opened under Pradhan Mantri Jan Dhan Yojna(PMJDY) reached 373.4 million accounts as on 31st August 2019.
Although there are lots of players present in the microfinance landscape and mature models of microlending, with a significant portion of its population in the low-income band, India represents a huge opportunity for the microfinance sector. Microfinance currently reaches less than 20% of potential households. So, there is still a large gap to be met in terms of the reach of microfinance.
2020 was a year mainly dominated and impacted by COVID-19. Small Finance Banks are beginning to feel the effect of local and state-wise lockdowns. However, small finance banks are better prepared this year (2021) in the second wave of the COVID 19 pandemic. Rural customers of Small Finance Banks are less affected by the second wave of COVID 19. There have been delays in collections, but collections have been hit only 1-3% in this second wave of COVID.
The collection capacity of the small finance bank industry improved to around 102%. The Indian microfinance market is expected to grow at a CAGR of more than 40% through 2025. South India accounts for more than one-third of the market share of the Microfinance industry.
The advances and deposits in the Small Finance Bank industry have increased with the CAGR of 75.3% and 155.3% respectively during the period FY16-FY20. It is expected to grow with a CAGR of 23-24% during the period FY20-FY23. SFBs’ share in the total banking industry has increased from 0.3% in FY19 to 0.5% in FY20 in the case of credit, and deposits share has increased from 0.6% in FY19 to 0.9% in FY20, and reporting offices share has increased from 1.5% in FY19 to 2.8% in FY20.
KEY FINANCIALS OF FINCARE SMALL FINANCE BANK LIMITED(In Rs. Crores)
Particulars | 2020 | 2019 | 2018 | 2017 |
Interest earned | 1,070.26 | 605.15 | 314.08 | 167.39 |
Other income | 145.46 | 69.73 | 36.53 | 18.15 |
Total Income | 1,215.72 | 674.88 | 350.61 | 185.54 |
Interest expended | 451.50 | 229.07 | 118.91 | 65.59 |
Operating expenses | 426.13 | 295.81 | 178.05 | 102.34 |
Provision and contingencies | 194.64 | 48.02 | 151.20 | 8.93 |
Total Expenditure | 1,072.27 | 572.90 | 448.16 | 176.86 |
Net profit for the year | 143.45 | 101.98 | -97.55 | 8.68 |
EPS | 24.43 | 22.41 | -26.04 | 3.91 |
BALANCE SHEET OF FINCARE SMALL FINANCE BANK LIMITED(In Rs. Crores)
CAPITAL AND LIABILITIES | 2020 | 2019 |
Capital | 63.61 | 56.44 |
Reserves and surplus | 840.16 | 609.56 |
Deposits | 4,653.93 | 2,043.21 |
Borrowings | 1,368.16 | 1,283.07 |
Other liabilities and provisions | 190.41 | 179.46 |
TOTAL CAPITAL AND LIABILITIES | 7,116.27 | 4,171.74 |
ASSETS | ||
Cash and balances with Reserve Bank of India | 1,058.53 | 141.91 |
Balances with banks and money at call and short notice | 24.37 | 379.67 |
Investments | 1,006.96 | 700.86 |
Advances | 4,815.58 | 2,764.69 |
Fixed assets | 40.36 | 33.07 |
Other assets | 170.47 | 151.54 |
TOTAL ASSETS | 7,116.27 | 4,171.74 |
Contingent liabilities | 18.37 | 114.75 |
DIVIDEND HISTORY
Particulars | 2020 | 2019 | 2018 |
Dividend (final + interim) (In Rs.) | Nil | Nil | Nil |
PERFORMANCE OF THE COMPANY
The total business of the Bank grew 97% Year on Year from Rs. 4,808 Crore as on 31st March, 2019 to Rs. 9,470 Crore ason 31st March, 2020.
Loan Assets under management increased by 51.4% from Rs. 3,530 Crore as on 31st March 2019 to Rs. 5,345 Crores as on 31st March 2020.
With respect to credit growth, gross advances rose toRs. 4,841 Crore as on 31st March 2020 from Rs. 2,791 Croreas on 31st March, 2019, registering a growth of73%.
The Bank’s microloans portfolio grew by 80% Year on Year to reach Rs. 3,796 Crore as on 31st March, 2020 fromRs. 2,109 Crore as on 31st March, 2019.
The secured loans portfolio registered a growth of 56% from Rs. 671 Crore as on31st March, 2019 to Rs. 1,046 Crore as on 31stMarch, 2020.
Deposits recorded a growth of 128% to reach Rs. 4,654 Crore as on 31st March,2020 from Rs. 2,043 Crore ason 31st March, 2019. The bank’s active deposit accounts grew from 8.5 lakhs in FY 2019 to 23.1 lakhs in FY 2020.
The Bank’s CASA deposits grew148% to reach Rs. 555 Crore as of 31st March 2020. Retail deposits accounted for 51% of the overall deposit base.
The cost of funds to the bank decreased from 9.3% in FY 2019 to 9.0% in FY 2020.
As of
31st March 2020, the Gross NPA of the Bank stood at 0.9% and the net NPA at 0.4%.
Interest earned by the bank increased by 77% from Rs. 605.15 Crore in FY 2019 to Rs. 1,070.26 Crore in FY 2020.
Net profit earned by the bank grew 41% from Rs. 101.98 Crores in FY 2019 to Rs. 143.45 Crores in FY 2020.
Fincare Small Finance Bank Limited has not given any dividends for t
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