Suryoday Small Finance Bank will go for initial public offering before the end of 2019. The bank plans to raise Rs 400-500 crore through IPO. Before that, it may look at issuing preferential shares to raise around Rs 250 crore.
“Through listing the bank on the bourses, we would raise some growth capital and provide an opportunity for some of the existing shareholders to divest their stake. Before that we might go for a preferential issue to raise Rs 200 to 250 crore,” said Baskar Babu, MD and CEO of Suryoday Small Finance Bank.
Suryoday, which used to be a micro-finance institution earlier, has been growing fast by converting its micro finance customers and adding new banking customers. It currently has a base of 8 lakh customers.
Since becoming a small finance bank in January 2017, Suryoday has grown its deposits to Rs 630 crore and hopes to touch Rs 700 crore by the end of this fiscal. SSFB offers one of the most competitive deposit rates in the industry. Currently, it offers an interest rate of up to 7.25 per cent for savings account. Similarly, the loan assets have moved up to Rs 1,600 crore. The bank targets Rs 3,000 crore loan assets by next year.
In order to expand its presence, Suryoday is launching “Partner led banking” outlets. For such outlets, the bank will partner with former bankers. By opening new branches, it wants to have a deeper presence in the seven states, including Tamil Nadu, Orissa and Maharashtra.