Fincare Small Finance Bank launches its third banking outlet in Chennai at Anna Nagar

Fincare Small Finance Bank launches its third banking outlet in Chennai at Anna Nagar

·        Fincare Small Finance Bank strengthens its presence in Tamil Nadu with 80 branches

·        Bank recently reported Net Profit of Rs. 101.98 crore for FY’19

·        In FY’19 Customer base grew 50% to over 1.5 million, employee base grew 24% to ~5500

Fincare Small Finance Bank (Fincare SFB) today launched its third banking outlet in Chennai at Anna Nagar, strengthening its branch count to 80 in Tamil Nadu. The state comprises a large base of both, retail consumers with investible surplus looking for high-interest earning avenues, as well as small enterprises in sectors such as manufacturing, textile, software, agriculture looking for finance to meet their capital needs. Sensing the huge economic and employment opportunity in Tamil Nadu, Fincare Small Finance Bank is steadily increasing its presence in the state with a comprehensive product basket for meeting both credit and deposit needs of people. The banking outlet at Anna Nagar is aimed to deepen its retail presence in the city.

Speaking at the launch Mr. Rajeev Yadav, MD & CEO, Fincare Small Finance Bank said, “Tamil Nadu is a state with a high literacy rate, and the awareness around financial services is high, and hence the high demand. To cater to the banking appetite of our esteemed customers at Chennai, we are opening the banking outlet at the prestigious and upmarket Anna Nagar area. Our offerings are tailored to address the high-interest deposit needs of retail clients as well as the business loan needs of small enterprises”. Mr Rajeev Yadav added, “Our loan offerings such as Loan against Gold, Affordable Housing Loan and Loan against Property along with our attractive fixed deposit, saving and current account offerings will enable us become a bank of choice for the client segments we serve”.

Fincare Small Finance Bank is present in 12 States and 1 Union Territory. Chennai being the biggest cultural, economic and educational centre of South India, is and will always remain as one of the biggest markets for Fincare Small Finance Bank. The banking outlets at Chennai are important as they offer the banks’ complete suite of products.

Fincare Small Finance Bank has over 15.5 lakh customers serviced through a network of over 570 banking outlets spanning 12 states and 1 Union Territory. Fincare SFB offers a complete suite of products including fund transfer facilities through NEFT, RTGS, IMPS, NACH as well as bill payment facilities. On the assets side, the bank provides loan against gold, loan against property, affordable housing loan and two-wheeler loans at affordable rates. Corporate salary and digital accounts are other noteworthy products.

FY’19 Financial Results of Fincare Small Finance Bank:

·        Total business of the Bank registered a growth of 95% to reach ₹ 5,573.4 Cr

·        ₹ 3,530 Cr Gross Loan Portfolio (65% y-o-y growth, 56% growth in microloans, 116% growth in other assets) – 20% secured portfolio

·        ₹ 2,043 Cr deposits (181% y-o-y growth; with 58% share of retail deposits)

·        0.3% Net NPA

·        Reported Net Profit of ₹ 101.98 Cr

·        Customer base grew 50% to over 1.5 million, employee base grew 24% to ~ 5500

Fincare Small Finance Bank posts annual net profit of 101.98 Cr, grows 205% y-o-y

 Fincare Small Finance Bank announced its audited financial results for the year ended 31^st March 2019 today. It is one of the 10 entities to have received in-principle approval from RBI in 2015 and commenced banking operations in July 2017.

Key Highlights

·         Annual net profit is at ₹ 101.98 Cr (grew by 205%) ·         Total business of the Bank registered a growth of 95% to reach ₹ 5,573.4 Cr ·         Deposits recorded a growth of 181% to reach ₹ 2,043.2 Cr ·         Asset quality improved substantially with GNPA at 1.29% and NNPA at 0.34% ·         Gross Loan Portfolio recorded a growth of 65% to reach ₹ 3,530 Cr ·         New business added during the year - assets side two-wheeler loans and liabilities side NRE fixed deposits, Recurring Deposits and Corporate Salary accounts ·         Total Bank Banking Outlets added during the year 111  ·         Total no. of customers grew 50% to over 1.5 million ·         No. of employees grew 24% to 5,498 ·         Net Interest Income at 10.8% ·         Disbursement grew 56 %

Commenting on the results and financial performance, Mr. Rajeev Yadav, Managing Director & CEO, Fincare Small Finance Bank said, “The results are a reflection of our continued efforts on profitable growth and diversification. We have made considerable progress during this year in growing our secured assets business, and in building a strong liabilities franchise, as is evident from the growth in both the businesses. Secured assets now comprise almost 20% of our gross loan portfolio. The Bank’s profits have recorded a growth of over 200%, while maintaining good asset quality. With this, we reiterate our commitment to serve the unbanked and underbanked communities in their path towards financial inclusion.

OPERATING REVIEW

Total Business

The total business of the Bank grew by 95% Y-o-Y from ₹ 2,862 Cr as on 31^st March 2018 to ₹ 5,573 Cr as on 31^st March 2019.

Credit Growth

Gross Advances at ₹ 3,530 Cr as on 31^st March 2019 from ₹ 2,135 Cr as on 31^st March 2018 registered a growth of 65%. The Bank’s microloans portfolio grew by 56% to reach ₹ 2,839 Cr as on 31^st March 2019 from 1,817 Cr as on 31^st March 2018. The Secured loans portfolio registered a growth of 216 % from ₹ 218 Cr as on 31^st March 2018 to ₹ 689 Cr as on 31^st March 2019.

Deposit Growth

Deposits recorded a growth of 181% to reach ₹ 2,043 Cr as on 31^st March 2019 from ₹ 727 Cr as on 31^st March 2018. The low-cost CASA segment grew by 609% to reach ₹ 224 Cr as on 31^st March 2019. Retail deposits, that is deposited under ₹ 2 Cr, accounted for 37% of the overall deposit base.

Net Profit

The Bank has recorded its highest ever annual net profit of ₹ 101.98 Cr (grew by 205%).

Asset Quality

The Gross NPA of the Bank as on 31^st March 2019 stood at 1.29% and the Net NPA at 0.34%. The Provision Coverage Ratio (including technical write-offs) stood at 73.6% as on 31^st March 2019.

Capital Adequacy & Net worth

The Capital Adequacy Ratio (CRAR) of the Bank, computed as per Basel II guidelines stood at 23.62% as on 31^st March 2019. The Net Worth of the Bank is ₹ 653.4 Cr as on 31^st March 2019.

DEPOSIT INTEREST CHART

FD Rates:

Tenure	General Public	Senior Citizen
7 days-45 days	4.00%	4.50%
46 days-90 days	4.00%	4.50%
91 days-180 days	6.00%	6.50%
181 days – 364 days	7.00%	7.50%
12 months to 15 months	8.00%	8.50%
15 months 1 day to 18 months	8.25%	8.75%
18 months 1 day to 21 months	8.50%	9.00%
21 months 1 day to 24 months	8.75%	9.25%
24 months 1 day to 36 months	9.00%	9.50%
3 years 1 day to 5 years	8.00%	8.50%
5 years 1 day to 7 years	7.00%	7.50%

RD Rates:

Tenure	General Public
7 days-45 days	4.00%
46 days-90 days	4.00%
91 days-180 days	6.00%
181 days – 364 days	7.00%
12 months to 15 months	8.00%
15 months 1 day to 18 months	8.25%
18 months 1 day to 21 months	8.50%
21 months 1 day to 24 months	8.75%
24 months 1 day to 36 months	9.00%
3 years 1 day to 5 years	8.00%

FOOTPRINT

The Bank has 570 banking outlets, and 71 Cash Recyclers as on 31^st March 2019.

Fincare SFB launches NRI Banking Services

Fincare SFB launches NRI Banking Services 

in Ahmedabad, services available pan India

Fincare SFB allows non-resident Indian (NRI) customers to open a Fixed Deposit with 9% p.a. interest which is one of the highest amongst banks

Fincare Small Finance Bank launched its NRI Banking services today, on the sidelines of the inauguration of its 4th outlet in Ahmedabad at Prahalad Nagar. The choice of Ahmedabad is significant, considering that the Gujarati community contributes to nearly 33% of the Indian diaspora, making Gujarat home to one of the largest NRI bases in the country. The offerings are available pan India.

With a tagline, ‘Feel at home, a thousand miles away’, Fincare SFB’s NR product allows NRI customers to deposit their overseas earnings in India.  The account can be opened either by visiting the branch or by bank officials visiting the customer at their convenience, during their visit home to India.

NR Product Features:

a.     9% interest p.a. on NR Fixed Deposits - one of the highest interest rates offered among banks in this segment

b.     Flexibility on interest payments options such as reinvestment FDs and periodic interest payout

c.     No hassle of maintaining multiple accounts – this allows NRs to open Fixed Deposits without the hassle of opening a savings account and credit the maturity proceeds to any bank account of choice

The bank will be introducing the complete basket of NRI products over the next few months. 

In a press statement, Mr. Rajeev Yadav, MD & CEO, Fincare SFB said, “With continuous effort on growth and diversification, the launch of NR product is a step towards offering a vast array of products to our customers. Given the bank’s deep presence in some of the key NRI markets such as Gujarat, and as Gujarat’s home grown bank, we are seeing an encouraging demand for the newly launched products, especially in this NR homecoming season. We welcome NRs to come and experience Fincare SFB’s NR banking services.”

Fincare Small Finance Bank, poised for a sustained growth with improved fundamentals, has registered a Rs. 42.3 crore profit after tax (PAT) in H1 FY19. The bank’s gross loans portfolio grew at 99 per cent during the year, to close at Rs. 2,899 crore, as on September 30, 2018. The bank has also garnered deposits worth Rs. 1,455 crore as on September 30, 2018, a growth of 383 per cent y-o-y, with retail deposits comprising 34 per cent of the total deposits.

The bank has a network of over 500 banking outlets catering to over 13 lakh customers across 10 states and 1 Union Territory.