Archive · 7 Oct 2026
Capital Small Finance Bank Targets Universal Bank Leap by FY29
Capital Small Finance Bank began by serving a few districts in Punjab.
It now has 219 branches in several states and Union Territories.
The bank mainly serves middle-income families and says many customers stay with it for a long time.
It wants to grow its loans and add branches by March 2029.
It says most of its loans are secured and that it checks whether borrowers can repay and how they will use the money.
Digital banking now handles 90% of its transactions, according to the bank.
The bank hopes to become a universal bank someday, but it has not set a firm deadline.
Its CEO says FY30 is only a possible goal, not a fixed date.
Capital Small Finance Bank has expanded from three Punjab districts to 219 branches across five states and two Union Territories.
Its deposits and advances have grown from about ₹2,950 crore in 2016 to around ₹19,700 crore.
The bank targets a loan book exceeding ₹16,000 crore and 300 branches by March 2029.
About 97% of its loans are secured, and it says it has never sold bad loans to an asset reconstruction company.
The bank aims for return on assets above 1.6% and return on equity above 15% by FY29.
- Who
- Capital Small Finance Bank and its managing director and CEO, Sarupjit Singh Samra.
- What
- The bank described its growth, lending approach and targets, including a loan book above ₹16,000 crore by FY29 and ambitions to become a universal bank.
- When
- The bank's stated targets are for FY29, ending March 2029; FY30 was mentioned as a possible, non-fixed universal-bank timeline.
- Where
- The bank operates across five states and two Union Territories and is entering Uttar Pradesh.
- Why
- It aims to expand its business, serve middle-income customers and progress toward meeting the requirements for conversion into a universal bank.
Growth and universal-bank ambition
Requirements and timing
Universal-bank conversion
Growth and universal-bank ambition
Samra said the bank aspires to become a universal bank and meets most regulatory parameters.
Requirements and timing
The bank's net NPA was 1.14% in the last quarter, above the stated conversion requirement of 1% or below; Samra said FY30 is only a possibility, not a fixed deadline.
Expansion strategy
Growth and universal-bank ambition
The bank plans to add 35–40 branches annually and targets 300 branches by March 2029, while pursuing a loan book above ₹16,000 crore.
Requirements and timing
It says expansion will remain contiguous and focused on building a meaningful presence, rather than spreading across the country simply for geographic reach.
- Branches
- 219 currently; target of 300 by March 2029.
- Operating footprint
- Five states and two Union Territories; the bank says it is entering Uttar Pradesh.
- Business
- Deposits and advances total about ₹19,700 crore, compared with around ₹2,950 crore when it converted to a small finance bank in April 2016.
- Loan book target
- More than ₹16,000 crore by March 2029.
- Secured lending
- Around 97% of the loan book is secured.
- Digital transactions
- The bank says it has reached its target of conducting 90% of transactions digitally.
- Net NPA
- 1.14% in the last quarter; Samra said the regulatory threshold for conversion is 1% or below.
- FY29 return targets
- Return on assets above 1.6% and return on equity above 15%.