Understanding The Revenue Model Of Capital Small Finance Bank

Capital Small Finance Bank (CSFB) pioneered modern banking facilities in rural areas at low cost. It is also India’s first Small Finance Bank(SFB) which started its operations on April 24, 2016. Today, CSFB serves many people in different states of India with its 7-Day branch banking with extended banking hours. 

In February 2017, Capital Small Finance Bank received a scheduled status from the Reserve Bank Of India(RBI). Over the years, CSFB has performed well in the banking sector and the grey market. The bank’s revenue increased significantly in the last financial year, along with year-on-year(YoY) growth. 

Today, Capital Small Finance Bank unlisted shares are in high demand. However, before you invest, it is important to know the revenue model of this SFB. Let’s see how Capital Small Finance Bank earns revenue.

Overview Of CSFB- India’s First Small Finance Bank

Before converting to the Small Finance Bank, CSFB operated as the local area bank in different states of India. Since 2000, it has been India’s largest local bank due to its extensive banking service in rural areas. During its transition, the bank operated with 47 branches which increased to 167 in a short span. 

Today, Capital Small Finance Bank is known for providing a safe and efficient repository of savings to the local people using advanced banking features. In 2017, CSFB was granted a schedule by the RBI and expanded its operations in other states of India. Apart from rural areas, Capital Small Finance Bank today targets the cities like Delhi, Haryana, and Mumbai and has emerged as an industry leader.

From a business perspective, this bank currently handles over 8,97,000 accounts with a total transaction of Rs 11,300 crores. If we compare Capital Small Finance Bank with its 

competitors like Fincare Small Finance Bank, there is a significant difference between their business and revenue model. The major portion of the revenue CSFB generates comes via its banking service. However, it also earns from the sale of Capital Small Finance Bank pre-IPO shares.

Revenue Model Of Capital Small Finance Bank

The revenue model of the Capital Small Finance Bank depends on the bank’s different business operations. Through its USP, this SFB usually targets the needs of mid-size agriculturalists via its untapped service of Kisan credit cards. The bank also provides retail, MSME, and house loans, which cover 29.6% of overall revenue. 

As of the report shared by Capital Small Finance Bank, it has earned over 80% of its revenue via priority sector lending in rural and urban areas. During this, an adjusted net bank credit of its increased by 47%, which contributed to its high revenue in the last year. To understand its revenue model in detail, we must also analyse its business. CSFB has consistently grown its business in the last few years. 

The total deposits recorded by this bank in FY23 were Rs 6,561 crore compared to Rs 1,814 crore in FY22. Due to this, CSFB’s overall revenue increased by 23% during this period. Another noteworthy metric is this small finance bank’s profit from its different service segments. In the last fiscal year, the bank’s profit increased from Rs 567 to Rs 725 crore.

According to recent data, the average business Capital Small Finance Bank does from each brand is Rs 49 crore. So the revenue model of the CSFB depends on its various service segments, which include Retail loans, MSME loans, banking facilities, mortgage lending, and more. Apart from this, it also earns from the trading of Capital Small Finance Bank unlisted shares. 

However, there is no exact figure disclosed by the bank, which it earns from the sale of its unlisted shares in the grey market. Its pre-IPO shares benefit investors, which are less risky and a great way to diversify investment portfolios. Investors can easily buy Capital Small Finance Bank unlisted shares by using online trading platforms like Stockify.

Buy Capital Small Finance Bank Unlisted Shares At Stockify

The capital small finance bank is a trusted SFB with a diversified revenue model contributing to its growth. Since its inception, This bank has catered to the banking and loan needs of people in rural and urban areas. However, investors can take advantage of CSFB growth by investing in its unlisted shares. 

As per recent market data, the current Capital Small Finance Bank share price in India is Rs 450.0. You can buy CSFB unlisted shares using Stockify, the best unlisted shares trading platform in India. Here, you will get complete guidance from industry experts while buying or selling pre-IPO shares.

Ready to buy unlisted shares of CSFB or other top-performing companies? Connect with our unlisted shares broker today!


1- What Was Capital Small Finance Bank’s Revenue In The Last Fiscal Year?

As per the recent data, the revenue of Capital Small Finance Bank for FY22 was Rs 676 crore.

2- Who Regulates Capital Small Finance Bank?

Capital Small Finance Bank is regulated by the Reserve Bank Of India(RBI) under the banking regulation Act 1949.

3- How Can I Invest In Capital Small Finance Bank Limited?

You can invest in Capital Small Finance Bank via its unlisted shares. Connect with our experts now to start investing in Capital Small Finance Bank unlisted shares!

4- What Is The Price Of Capital Small Finance Bank Unlisted Shares Today?

The current price of Capital Small Finance Bank’s pre-IPO share is Rs 450. To stay updated with the future share price, subscribe to Stockify.

5- Is Investing In Capital Small Finance Bank Unlisted Shares Profitable?

Capital Small Finance Bank is the fastest growing SFB whose earning per share ratio increased to 27.6 in FY23. To buy CSFB unlisted shares, contact us now!

Table of Contents

Capital Small Finance Bank’s diversified revenue model helps it maintain a high growth rate. Here’s how this SFB earns revenue.


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Rahul Khatuwala
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