Capital Small Finance Bank has come up with an excellent 6M results for FY21 amid business problem faced by many in the economy due to COVID-19.
A) Results Update
| Particulars (Crores) | Half Year Ended 30.09.2020 | Half Year Ended 30.09.2019 |
| Intest/disc. on advances/ bills | 183.00 | 153.00 |
| Income on investments | 41.00 | 35.00 |
| Interest on balances with Reserve Bank of India and other inter-bank funds | 24.00 | 25.00 |
| Other Income | 18.00 | 21.00 |
| Total Income | 266.00 | 234.00 |
| Interest Cost | 154.00 | 135.00 |
| Operating Expenses | 82.00 | 76.00 |
| Other Expense | 40.00 | 37.00 |
| Total Expenditure | 237.00 | 211.00 |
| Net-Profit | 15.00 | 12.00 |
| Equity Shares | 3.39 | 3.01 |
| Reserves | 389.00 | 272.00 |
| Book Value | 115.63 | 91.36 |
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- The Capital Small Finance Bank has shown 13% increase in its revenue in the first 6M of FY21 as compared to last year in the same period.
- Capital Small Finance Bank has clocked the PAT of 15 Crores in the first 6M of FY21 as compared to 12 Crores last year.
- Capital Small Finance Bank has book value of 115 as on 30.09.2020.
B) Analytical Ratios
| Particulars (Crores) | 30.09.2020 | 30.09.2019 |
| Analytical Ratios | ||
| Capital Adequacy Ratio | 19.16% | 17.57% |
| EPS | 4.49 | 4.43 |
| Gross NPA | 56.00 | 55.00 |
| Net. NPA | 35.00 | 40.00 |
| % Gross NPA | 1.65% | 1.85% |
| % of Net NPAs | 1.02% | 1.35% |
| Return on Assets (Annualized) | 0.55% | 0.57% |
| Books Size (Cr) | ||
| Deposits | 4,799.00 | 4,106.00 |
| Advances | 3,438.00 | 3,041.00 |
| Branch Network | ||
| Rural | 64 | 63 |
| Semi Urban | 47 | 46 |
| Urban | 30 | 29 |
| Metro Politan | 11 | 12 |
| Total | 152 | 150 |
- Capital Small Finance has loan book of 3438 Crores as on 30.09.2020 up by 400 Crores as compared to last year same period.
- Gross NPA and Net NPA has gone down in the first 6M of FY21. which is positive sign.
- They have opened two new branches in the last 6 months.
Valuation
Currently, it is available in the market at Rs. 260 per share. So, on that unlisted price with Book Value of 115, the P/B at which share available is 2.26x (which is quite reasonable).
Brief about Capital Small Finance Bank
Capital Small Finance Bank Limited is India’s 1st Small Finance Bank, started operations on April 24, 2016. It was called ” Capital Local Area Bank”, the largest Local Area Bank in the country, before conversion to ‘Small Finance Bank’ has been into operations for the last 16 years with excellent performance in all spheres. The Bank pioneered in bringing modern banking facilities to the rural areas at a low cost. From day one 7-Day Branch Banking was introduced with extended banking hours. The focus to serve the common man and the local touch advantages has given the Bank a competitive edge over other banks operating in the region. Within a short period, most of the Branches become market leaders of their respective centers. The Bank is providing a safe, efficient, and service-oriented repository of savings to the local community while reducing their dependence on moneylenders by making need-based credit easily available.
