Date: October 29, 2026

Financial Performance Summary

Quarterly Performance (Q2 FY27):

  • Profit After Tax (PAT): ₹45.61 crore, up 30.7% YoY from ₹34.89 crore in Q2 FY26
  • Pre-Provision Operating Profit (PPOP): ₹67.92 crore, up 30.9% YoY
  • Net Interest Margin (NIM): 4.24%, up from 4.04% in Q2 FY26
  • Return on Assets (ROA): 1.39%, improved from 1.26% in Q2 FY26
  • Net Interest Income: ₹138.7 crore, growing 24.2% year-on-year
  • Non-interest income: 0.92% of average total assets (vs 0.82% previous quarter, 0.86% year ago)
  • Operating margins: 2.08% (vs 2.04% previous quarter, 1.88% year ago)
  • Cost-to-income ratio: 59.8% (improved from 61.7% a year back)

Half-Yearly Performance (H1 FY27):

  • PAT: ₹86.91 crore, up 29.9% YoY from ₹66.90 crore in H1 FY26

Business Growth Metrics

Advances:

  • Gross Advances: ₹9,755 crore as of September 30, 2026
  • YoY growth: 23.4%
  • QoQ growth: 7.5%
  • Disbursements during Q2: ₹1,095 crore, up 36.0% YoY from ₹805 crore in Q2 FY26
  • Loan book characteristics: ~97% secured, retail-focused secured lending philosophy

Deposits:

  • Total Deposits: ₹10,831 crore as of September 30, 2026
  • YoY growth: 16.2%
  • CASA deposits: ₹3,734 crore
  • CASA ratio: 34.5% (vs 33.9% as of September 30, 2025)

Asset Quality

  • Gross NPA: 2.36% (improved from 2.47% in Q1 FY27 and 2.70% in Q2 FY26)
  • Net NPA: 1.12% (improved from 1.14% in Q1 FY27 and 1.38% in Q2 FY26)

Capital Position

  • Capital Adequacy: 20.78%
  • Tier I Capital: 18.45%

Operational Metrics

  • Branch network: 222 branches across 5 states and 2 Union Territories
  • Geographic presence: Focus on rural and semi-urban markets
  • Target customer segment: Middle-income group

Management Commentary

Mr. Sarvjit Singh Samra, Managing Director & CEO, highlighted the strength of the Bank's established banking model and benefits of disciplined, consistent execution. The focus remains on relationship-led banking, prudent lending, and customer engagement.

Strategic Priorities:

  • Deepening presence in existing markets while expanding into contiguous geographies
  • Strengthening retail-driven deposit franchise
  • Maintaining secured & retail-focused lending practices
  • Serving the aspiring middle-income customer segment
  • Progress toward ₹16,000+ crore loan book (Vision 2029)

Commitments:

  • Disciplined growth
  • Preserving asset quality
  • Enhancing operating efficiency
  • Creating sustainable long-term value for all stakeholders

Corporate Background

Capital Small Finance Bank commenced operations as India's first Small Finance Bank on April 24, 2016, following conversion from Capital Local Area Bank which had been India's largest local area bank since January 14, 2000. The Bank is headquartered at Jalandhar, Punjab.