‘NPAs peaked a few quarters ago’

Fincare Small Finance Bank revived its plans to hit the capital market and has now refiled Initial public offering IPO) papers with the market regulator. RAJEEV YADAV, managing director chief executive officer of Fincare Small Finance Bank, told Manojit Saha in an interview that tapping the capital market is both due to regulatory requirements and funding growth. Edited excerpts:

- Manojit Saha

In August, Fincare SFB refiled the IPO papers with Sebi. When are you planning to come up with the IPO?

We will try and work within the validity period of the approval, which is typically one year from the formal approval date.

Is the IPO to meet regulatory requirements on listing or is it to fund business growth?

It is a combination of both. We clearly have a regulatory deadline and the process is designed for regulatory compliance. As it would normally happen for a bank of our size, it is fair to make it public for a larger, diversified shareholding and raising incremental capital for the growth of the bank.

The capital adequacy ratio was far above the regulatory requirement...

For a fast-growing institution like ours as you can see within Covid also, we registered 25 per cent growth last year, and it was even higher prior to Covid. So even as 22 per cent capital adequacy ratio is sufficient, the bank will always need capital to keep pace with its growth ambition.