Two private life insurers, ICICI Prudential Life Insurance and HDFC Standard Life Insurance, and Pi Ventures LLP have taken a combined 14.7 per cent stake in Punjab-based Capital Small Finance Bank.
The amount infused by the three investors in Jalandhar-based CSFB is Rs 64.66 crore, taking its capital adequacy ratio to 24 per cent. Each of the three have taken a 4.9 per cent equity stake in the lender, whose total business stood at Rs 3,750 crore at March-end, said its managing director, Sarvjit Singh Samra.
KPMG was financial advisor for this transaction.
CSFB, the country's first in the new category of Small Finance Banks (SFBs), started operations on April 24 last year. It and nine other entities were granted in-principle approval by the Reserve Bank of India to set up an SFB, in September 2015.
The bank's total business is Rs 3,750 crore, with 432,000 of accounts. Business is expected to grow, it says, to Rs 12,000 crore by March 2021.