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Home Asia Our intent is to list as early as possible: MD, Suryoday SFB

Our intent is to list as early as possible: MD, Suryoday SFB

Suryoday Small Finance Bank, which has recently filed DRHP with SEBI, is keen on listing “as early as possible to be compliant with licensing conditions,” said R Baskar Babu, Managing Director and CEO, SSFB.

The conditions stipulate Small finance banks have to list within three years of their net worth reaching ₹500 crore.

In an interaction with BusinessLine, Babu said “As disclosed in DRHP, the IPO is for capital augmentation. As an institution, we have always believed in having high capital adequacy. As a bank, in the formative years, we have decided to have capital adequacy much higher than the regulatory requirements,” he said.

“It will augment our capital to about 27-30 per cent, which is what we would like to maintain for the next couple of years,” he said. The bank plans to issue two crore equity shares as part of the IPO.

Also read: Suryoday SFB to launch IPO of 2 crore equity shares

As of March 2020, the net worth of the bank was ₹1,066.23 crore with a capital adequacy ratio of 30 per cent.

Supporting customers

Babu said the bank has rolled out an overdraft facility for its customers and also wants to motivate customers to take up government’s insurance schemes— Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana.

“The intent is to cover almost 100 percent of our customers with the standby OD product and get them covered under PMSBY and PMJJBY product as well as the main breadwinner of the family,” he said, adding that the pandemic has pushed the bank from transactional banking to relationship banking.

Suryoday Small Finance Bank is also focussing on affordable home loans. “We are doing it as a product but are focussed more on existing micro loan customers,” Babu said.

Also read: Suryoday Small Finance Bank disburses first loan under PM SVANidhi scheme

It has also started disbursing loans under the Prime Minister Street Vendor’s Atmanirbhar Nidhi scheme.

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