Mumbai, Jan. 11 -- Punjab-based Capital Small Finance Bank Ltd is planning to raise at least Rs 150 crore in private equity funding as it looks to expand its operations, two people aware of the development said. Capital SFB was one of the 10 entities to receive Reserve Bank of India's (RBI's) in-principle approval to start small finance bank operations in September 2015. It was the first to start operations in April 2016.

"They have started talking with PE funds to raise fresh capital. They are trying to raise at least Rs 150 crore. The talks are at a preliminary stage right now. Investment bank Edelweiss is advising the bank on the fundraise," said one of the people cited above, requesting anonymity.

The bank will use the capital to gr...