Capital Small Finance Bank Reports Steady Growth in Q1 FY26

Capital Small Finance Bank has announced its unaudited financial results for the quarter ended June 30, 2025 (Q1 FY26), reporting consistent growth across key parameters, reinforcing its position as a stable, retail-focused banking institution.

Sarvjit Singh Samra, Managing Director & CEO, said, "Despite a soft interest rate environment and sectoral asset quality challenges, we remained focused on building a high-quality, secured loan portfolio and retaining a strong CASA ratio. Our strategy continues to prioritise long-term value and disciplined lending."

Key highlights from Q1 FY26:

• Total deposits stood at Rs 91.10 billion, up 17.1% YoY and 9.5% QoQ
• CASA ratio remained strong at 35.9%
• Gross advances reached Rs 74.37 billion, growing 16.4% YoY and 3.5% QoQ
• Disbursements rose to Rs 8.65 billion, up from Rs 7.54 billion YoY (15% growth)
• Loan book is 99.8% secured, with zero direct MFI exposure
• Net Interest Margin (NIM) held steady at 4.1%
• Operating profit (PPOP) grew 24%, aided by a 38% increase in non-interest income
• PAT rose 7% YoY to ₹32 crore
• Asset quality remained stable with GNPA at 2.7% and NNPA at 1.4%

The bank also achieved a reduction in its cost-to-income ratio to 60.5%, down from 62.6% in Q4 FY25.

With a well-diversified, secured loan book and a resilient retail deposit base, Capital Small Finance Bank continues to strengthen its fundamentals while delivering consistent performance.