Capital Small Finance Bank Reports Strong Q2 FY26 Results with 18% Growth in Advances and ₹35 Crore Profit

• Gross Advances rise 17.7% Y-o-Y, 6.3% Q-o-Q and 10.1% YTD to ₹7,907 crore
• Deposits up 19.8% Y-o-Y, 2.3% Q-o-Q and 12.0% YTD to ₹9,317 crore 
• Disbursement during Q2FY26 rise 36.2% Y-o-Y to ₹805 crore 
• Profit After Tax increases 4.6% Y-o-Y to ₹35 crore
• ROA during Q2FY26 improved to 1.3% (vs 1.2% in Q1FY26)
• GNPA / NNPA maintained at 2.70% / 1.38%, slightly improved from the last quarter (2.75%/1.39%)
• Capital Adequacy Ratio robust at 24.2%

Capital Small Finance Bank Limited (Capital SFB) has announced its unaudited financial results for the quarter and half year ended September 30, 2025, reporting steady, relationship-led growth across key business parameters. The bank demonstrated consistent performance in advances, deposits, and profitability despite a dynamic economic environment.

During Q2 FY26, gross advances rose 17.7% year-on-year (Y-o-Y) and 6.3% quarter-on-quarter (Q-o-Q) to ₹7,907 crore, while total deposits increased 19.8% Y-o-Y and 2.3% Q-o-Q to ₹9,317 crore. Disbursements surged 36.2% Y-o-Y to ₹805 crore, supported by demand across mortgage, MSME, and agriculture segments. Profit After Tax (PAT) grew 4.6% Y-o-Y to ₹35 crore.

The bank’s Return on Assets (ROA) improved to 1.3% (versus 1.2% in Q1 FY26), and asset quality remained stable with Gross NPA at 2.70% and Net NPA at 1.38%, marginally better than the previous quarter (2.75% / 1.39%). The Capital Adequacy Ratio stood strong at 24.2%, underscoring Capital SFB’s robust financial position.

Leadership Commentary

Mr. Sarvjit Singh Samra, Managing Director & CEO, Capital Small Finance Bank, said:

"The quarter ended September 30, 2025 was marked by healthy credit offtake and stable margins, reflecting the strength of our core operating model.
Our total deposits reached ₹9,317 crore, up ~20% year-on-year, with CASA at 33.9%, highlighting the stability of our retail deposit franchise. Gross advances stood at ₹7,907 crore, growing ~18% year-on-year, supported by healthy disbursement activity across mortgage, MSME, and agriculture segments. Disbursements during the quarter rose to ₹805 crore, up 36% year-on-year, aided by festive demand, improved business sentiment, and strong rural cash flows. Asset quality remained stable with gross NPA at 2.70% and net NPA at 1.38%, reflecting continued prudence and strong recoveries. Our Net interest margin Stood at 4.0%, and profit after tax at ₹35 crore, up 5% year-on-year, supported by steady operating performance.
We are confident that with the supportive macro backdrop — including benign inflation, GST-led consumption boost, and strong festive momentum — we are well-positioned to sustain healthy growth in deposits and advances in the second half of the year.”

Recent Developments

• Expanded its physical presence to 200 branches across five states and two Union Territories, strengthening its reach and accessibility.
• Signed Business Correspondent (BC) partnerships with selected NBFCs (with FLDG cover) to expand its high-yielding, secured loan portfolio.