Date: July 23, 2026

Financial Performance Overview

Capital Small Finance Bank reported unaudited financial results for Q1 FY27 (quarter ended June 30, 2026) showing strong growth across key metrics.

Profitability Metrics

  • Profit After Tax (PAT) stood at ₹41.3 crore, representing a 29.0% year-on-year increase from ₹32.0 crore in Q1FY26
  • Pre-Provision Operating Profit (PPOP) reached ₹64.7 crore, up 23.1% year-on-year
  • Return on Assets (ROA) improved to 1.30% from 1.18% in Q1FY26
  • Operating margins strengthened to 2.04% compared to 1.94% a year ago

Balance Sheet Growth

  • Gross Advances grew to ₹9,074 crore, showing 22.0% year-on-year growth and 4.5% quarter-on-quarter growth
  • Total Deposits increased to ₹10,596 crore, registering 16.3% year-on-year growth and 5.8% quarter-on-quarter growth
  • Disbursements during the quarter were ₹1,009 crore, up 16.5% year-on-year from ₹865 crore in Q1FY26

Asset Quality and Capital Position

  • Gross NPA improved to 2.47% from 2.54% in Q4FY26 and 2.75% in Q1FY26
  • Net NPA improved to 1.14% from 1.24% in Q4FY26 and 1.39% in Q1FY26
  • Provision Coverage Ratio (PCR) increased to 54.5% from 51.9% in the previous quarter
  • Capital Adequacy Ratio stood at 21.58% with Tier I capital at 19.17%
  • Approximately 98% of the loan book remains secured

Margin Performance

  • Net Interest Margin (NIM) expanded to 4.21% from 4.06% in both Q1FY26 and Q4FY26
  • Non-interest income remained at 0.82% of average total assets
  • The improvement in NIM was supported by decline in deposit cost on repricing and acceleration in the CD ratio

Deposit Franchise

  • CASA ratio improved to 36.7% as of June 30, 2026, compared to 34.7% as of March 31, 2026 and 35.9% as of June 30, 2025
  • The improvement reflects continued strengthening of the Bank's retail deposit franchise and deeper customer engagement

Operational Presence

  • The Bank operates 216 branches across 5 states and 2 Union Territories
  • Focus remains on serving the middle-income group segment with a retail-led secured lending franchise
  • The Bank maintains presence in rural and semi-urban markets

Management Commentary

According to Mr. Sarvjit Singh Samra, Managing Director & CEO, the Bank commenced the financial year on strong footing with healthy advance growth in Q1FY27. The management remains focused on expanding presence across the middle-income segment, strengthening customer relationships, maintaining asset quality and delivering sustainable, profitable growth during FY27. The momentum marks an important step toward Vision 2029 with a targeted loan book of ₹16,000++ crore by FY29.

Strategic Focus

The Bank remains committed to disciplined growth, improving margins, strengthening liability traction and maintaining strong asset quality. As the Bank deepens presence across existing markets and enters newer areas, it continues to serve the middle income group segment while maintaining its retail-led secured lending franchise.