Capital Small Finance Bank raises yearly growth target to 24

Kolkata: Capital Small Finance Bank plans to step on the gas on business expansion, executive director Munish Jain told ET in an interview.

After growing 20% year-on-year in 2025, the Jalandhar-based lender has set a target of 23-24% growth for the next couple of years, which would help it to double down business to Rs 16,000 crore by 2029. At present, it has a portfolio of Rs 8,164 crore, with agriculture and MSME loans together contributing 53% of it.

"Next year onwards, we are giving a guidance that we want to double down by 2029, which translates into 23 to 24% growth," Jain said. "We are sticking to our target of Rs 16,000 crore by March 2029."


Capital SFB has a 99% secured portfolio.

"We will continue to be a secured franchise in which MSME lending is leading the pack. MSME will continue to lead the pack for some time," Jain said. MSME lending contributed a fourth of its business.

The management headed by managing director Sarvjit Singh Samra expects the net interest margin (NIM) to improve from next year, helped by a decline in deposit cost.

Its NIM for the third quarter remained stable at 4% as compared to the preceding quarter but came softer from the year-ago period's 4.3%.

Jain said the bank's cost of deposits has started coming down with the effect of repricing. The bank reduced its saving bank rate to 3.1% from November last year from 3.25% earlier. It has seen a rise in average saving deposit ticket size to Rs 52,000 per account from Rs 47,000 a year back, helping it to improve the share of current and savings account deposits to 36% at the end of December from 34% three months prior.