Capital SFB looks beyond Punjab, as it targets Rs 16,000 crore AUM by FY29
Capital Small Finance Bank will remain a retail-focused lender and wants to bring down its net NPAs to below 1%, its Executive Director, Munish Jain, said
- Nov 12, 2026,
- Updated Nov 12, 2026 4:48 PM IST
Capital Small Finance Bank is looking to go deeper in its existing geographies, while simultaneously exploring entry into two new states, and remains confident of scaling its assets under management (AUM) to over Rs 16,000 crore by financial year 2029.
The Jalandhar-headquartered small finance bank (SFB) has a strong presence in Punjab and Haryana and has also added branches in neighbouring regions such as Delhi, Himachal Pradesh, and parts of Rajasthan. It had an AUM of Rs 9,755 crore in the July-September quarter.
“We intend to be a Rs 16,000 crore AUM lender by FY2029, with over 300 branches, out of which 30% of the branches should be out of the home state of Punjab. Wherever we go, we want to be meaningfully present there,” Munish Jain the executive director of Capital SFB, told Business Today.
Capital SFB is now the fifth largest private sector bank in Punjab in terms of branches and wants to build a similar scale in Haryana, according to him.
He pointed that from the September quarter of FY26 to September FY27, Capital SFB grew 23%. So, “if you look at the CAGR (compounded annual growth rate) that we need to achieve the Rs 16,000 crore AUM target, we are slightly ahead of that.”
The lender was earlier a local area bank, before it converted and began operations as an SFB back in April 2016. It intends to focus on the northern states only for now, as it sees significant growth opportunities there. Capital SFB has been a retail-focused bank, primarily targeting the middle-income group (MIG) customers.
“Our deposits have been growing at a 19% CAGR since we converted to an SFB and of the deposits mix, 90% are retail deposits. While there may be some changes in the retail mix as we scale up, we intend to remain a MIG-driven lender,” said Jain.
Capital SFB has no plans to cater to those in the lower income or the super-rich and high-networth individuals, stressed Jain.
The bank’s total deposits stood at Rs 10,831 crore at the end of September 2026. Its loan book also remains diversified. Loans to micro, small and medium enterprises, trading, and other business loans accounted for 28% of its Rs 9,755-crore AUM, and agriculture loans accounted for 26%. Housing Loan, LAP (loan against property), and other mortgage loans together accounted for another 24%.
Even as its loan book is expanding, the lender continues to focus on reducing its non-performing assets. In the July-September quarter, its gross NPAs declined 2.36% from 2.47% at the end of June, and net NPAs were at 1.12%, versus 1.14% in the same period. It has targeted net NPAs below 1% by FY29.
While the lender has a large presence in the agriculture space, officials are not too worried over the deficit rainfall this year, as its presence remains restricted to the north, while several states in west and south, such as Maharashtra and Karnataka, have declared drought in several places.
Sarvjit Singh Samra, the MD and CEO of Capital SFB, pointed excess rains in 2025 had helped in replenishing the groundwater reserves in Punjab and Haryana, which, coupled with canal irrigation, meant there won’t be any major impact of the low rainfall on agriculture there.
Capital Small Finance Bank is looking to go deeper in its existing geographies, while simultaneously exploring entry into two new states, and remains confident of scaling its assets under management (AUM) to over Rs 16,000 crore by financial year 2029.
The Jalandhar-headquartered small finance bank (SFB) has a strong presence in Punjab and Haryana and has also added branches in neighbouring regions such as Delhi, Himachal Pradesh, and parts of Rajasthan. It had an AUM of Rs 9,755 crore in the July-September quarter.
“We intend to be a Rs 16,000 crore AUM lender by FY2029, with over 300 branches, out of which 30% of the branches should be out of the home state of Punjab. Wherever we go, we want to be meaningfully present there,” Munish Jain the executive director of Capital SFB, told Business Today.
Capital SFB is now the fifth largest private sector bank in Punjab in terms of branches and wants to build a similar scale in Haryana, according to him.
He pointed that from the September quarter of FY26 to September FY27, Capital SFB grew 23%. So, “if you look at the CAGR (compounded annual growth rate) that we need to achieve the Rs 16,000 crore AUM target, we are slightly ahead of that.”
The lender was earlier a local area bank, before it converted and began operations as an SFB back in April 2016. It intends to focus on the northern states only for now, as it sees significant growth opportunities there. Capital SFB has been a retail-focused bank, primarily targeting the middle-income group (MIG) customers.
“Our deposits have been growing at a 19% CAGR since we converted to an SFB and of the deposits mix, 90% are retail deposits. While there may be some changes in the retail mix as we scale up, we intend to remain a MIG-driven lender,” said Jain.
Capital SFB has no plans to cater to those in the lower income or the super-rich and high-networth individuals, stressed Jain.
The bank’s total deposits stood at Rs 10,831 crore at the end of September 2026. Its loan book also remains diversified. Loans to micro, small and medium enterprises, trading, and other business loans accounted for 28% of its Rs 9,755-crore AUM, and agriculture loans accounted for 26%. Housing Loan, LAP (loan against property), and other mortgage loans together accounted for another 24%.
Even as its loan book is expanding, the lender continues to focus on reducing its non-performing assets. In the July-September quarter, its gross NPAs declined 2.36% from 2.47% at the end of June, and net NPAs were at 1.12%, versus 1.14% in the same period. It has targeted net NPAs below 1% by FY29.
While the lender has a large presence in the agriculture space, officials are not too worried over the deficit rainfall this year, as its presence remains restricted to the north, while several states in west and south, such as Maharashtra and Karnataka, have declared drought in several places.
Sarvjit Singh Samra, the MD and CEO of Capital SFB, pointed excess rains in 2025 had helped in replenishing the groundwater reserves in Punjab and Haryana, which, coupled with canal irrigation, meant there won’t be any major impact of the low rainfall on agriculture there.