Amicus Capital has invested up to INR 43 crores in Capital Small Finance Bank to support its expansion into new regions while deepening its market presence in Punjab.

Information on the Target

Bangalore-based mid-market private equity fund Amicus Capital has committed up to INR 43 crores in Capital Small Finance Bank ("Capital SFB" or "the Bank"), which is based in Punjab. Existing investor Pi Ventures also participated in this funding round, contributing to a strong capital base. The Bank has notable investors such as HDFC Life, ICICI Prudential Life, and the Small Industries Development Bank of India (SIDBI). Founded in 2000 by Mr. Sarvjit Singh Samra as a Local Area Bank, Capital SFB has since grown to be one of the leading banks in Punjab and neighboring regions.

Industry Overview in India

Capital SFB was one of ten entities among 72 applicants granted 'In-Principle' approval by the Reserve Bank of India to set up a Small Finance Bank on September 16, 2015. Notably, it was among just two non-microfinance institutions to receive this approval. Capital SFB commenced operations as India's first Small Finance Bank on April 24, 2016, transitioning from its earlier identity as a Local Area Bank, which was operational since January 14, 2000.

The Small Finance Bank sector in India has shown robust growth, driven by the increasing need for financial inclusion. With a focus on serving unbanked and underbanked