Capital Small Finance Bank (Capital SFB) is setting an ambitious target to significantly expand its assets under management (AUM) to over Rs 16,000 crore by the financial year 2029. This growth strategy involves a substantial push beyond its traditional stronghold in Punjab, with plans to establish a stronger presence across northern India.
Munish Jain, Executive Director of Capital SFB, revealed that the Jalandhar-headquartered bank intends to increase its branch network to more than 300 outlets by FY29. A key part of this expansion will see approximately 30% of these new branches located outside its home state of Punjab, as the bank explores entry into two new states while deepening its footprint in existing regions like Haryana, Delhi, Himachal Pradesh, and parts of Rajasthan.
Strategic Geographic Expansion
Having already established itself as the fifth largest private sector bank in Punjab by branch count, Capital SFB aims to replicate this success in Haryana. The bank's growth trajectory has been robust, with a 23% increase from September FY26 to September FY27, positioning it ahead of the compounded annual growth rate required to hit its FY29 AUM target.
Originally a local area bank, Capital SFB transitioned to a small finance bank in April 2016. Its current strategy focuses solely on northern states, where it identifies considerable growth prospects, particularly within the middle-income group (MIG) customer segment.
Retail Focus and Financial Health
Capital SFB remains committed to its retail-focused lending model, primarily serving MIG customers. "Our deposits have been growing at a 19% CAGR since we converted to an SFB," stated Munish Jain, highlighting that retail deposits constitute 90% of its total deposit mix. The bank explicitly stated it has no intentions of targeting lower-income individuals or high-net-worth clients.
As of September 2026, the bank's total deposits stood at Rs 10,831 crore, with its AUM reaching Rs 9,755 crore during the July-September quarter. The loan book demonstrates diversification, with micro, small, and medium enterprises (MSME), trading, and other business loans accounting for 28% of AUM. Agriculture loans represent 26%, while housing loans, loans against property (LAP), and other mortgage loans collectively make up 24%.
The bank is also prioritizing asset quality. In the July-September quarter, its gross non-performing assets (NPAs) decreased to 2.36% from 2.47% in the previous quarter, with net NPAs at 1.12%. Capital SFB has set a target to bring net NPAs down to below 1% by FY29.
Regarding its significant presence in the agriculture sector, MD and CEO Sarvjit Singh Samra addressed concerns about deficit rainfall. He noted that excess rains in 2025 replenished groundwater in Punjab and Haryana, and coupled with canal irrigation, the impact of low rainfall on agriculture in these northern states is expected to be minimal, unlike some western and southern states facing drought declarations.