Earnings Review
Strong advances, NII growth boost Capital Small Finance Bank PAT
This story was originally published at 17:25 IST on 23 July 2026
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--Capital Small Fin Bank Apr-Jun net profit INR 413.0 mln
--Capital Small Fin Bk Q1 total income INR 3.14 bln
--Capital Small Fin Bank Q1 net profit INR 413.0 mln vs INR 320.10 mln yr ago
--Capital Small Fin Bk Q1 total income INR 3.14 bln vs INR 2.70 bln yr ago
--Capital Small Fin Bank Q1 provisions INR 93.50 mln vs INR 88.40 mln yr ago
--Capital Small Fin Bank gross NPA ratio 2.47% on Jun 30 vs 2.54% qtr ago
--Capital Small Fin Bk net NPA ratio 1.14% on Jun 30 vs 1.24% qtr ago
--Capital Small Fin Bk capital adequacy ratio 21.58% on Jun 30
By Pratiksha
NEW DELHI – Capital Small Finance Bank's net profit for the June quarter rose at its fastest pace in seven quarters year-on-year, thanks to strong growth in net interest income and advances. The bank posted a net profit of INR 413 million for the June quarter, up 29% year-on-year and 3% sequentially.
The bank reported a total income of INR 3.14 billion, up over 16% year-on-year. Of this, interest earned rose to INR 2.88 billion, up almost 17% on-year and 6% sequentially. The lender's net interest income rose 22% on year to INR 1.34 billion for the June quarter. The bank's total expenses rose 14% on year to INR 2.50 billion. Of this, interest expenses rose almost 13% on year to INR 1.55 billion.
Gross advances grew 22% on year to INR 90.74 billion as of Jun. 30, with disbursements up almost 17% on year to INR 10.09 billion. Loans to micro, small, and medium enterprises and agriculture comprised of the biggest share of the total book at 27?ch, followed by loans against property at 14%. "The loan book remains well-diversified, with ~98?ing secured, consistent with the Bank's prudent, retail-focused lending philosophy," the bank said in a press release.
Loans to micro, small, and medium enterprises grew the most as of Jun. 30, rising almost 49% on year to INR 24.52 billion. Agriculture loans increased almost 8% on year to INR 24.25 billion. Loans against property rose almost 18% on year to INR 13.04 billion.
Total deposits rose over 16% to INR 105.96 billion as of Jun. 30. The current account savings account ratio was at 36.7% for the reporting quarter, up from 34.7% a quarter ago.
Net Interest Margin improved to 4.21% against 4.06% in the previous quarter and 4.06% a year ago, supported by decline in deposit cost on repricing, coupled with acceleration in the credit-deposit ratio.
The bank's provisions and contingencies rose almost 6% on year to INR 94 million in the reporting quarter. This was the slowest rise in the bank's provisions in five quarters. The lender's gross non-performing asset ratio improved to 2.47% as on Jun. 30, from 2.54% as on Mar. 31 and 2.74% at the end of June 2025. The net non-performing asset ratio was 1.14% as on Jun. 30, down from 1.24% at the end of March and 1.39% at the end of June 2025.
"We remain focused on expanding our presence across the middle-income segment, strengthening customer relationships, maintaining asset quality and delivering sustainable, profitable growth during FY27," Capital Small Finance Bank's Managing Director and Chief Executive Officer Sarvjit Singh Samra, said in the release.
The bank's provision coverage ratio rose to 54.51% in the June quarter, up from 51.89% a quarter earlier. The small finance bank's tier-I capital adequacy ratio was 21.58% as of Jun. 30, down from 22.31% a quarter ago.
On Thursday, shares of the bank ended 0.4% lower at INR 299.55 on the National Stock Exchange. The bank's June quarter earnings were announced after market hours. End
Edited by Akul Nishant Akhoury
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