Capital Small Finance Bank Limited has reported a Profit After Tax (PAT) of ₹45.61 crore for the quarter ended September 30, 2026, marking a 30.7% rise from ₹34.89 crore in the same quarter last year. For the first half of FY27, the Bank’s PAT stood at ₹86.91 crore, up 29.9% from ₹66.90 crore in the corresponding period of the previous year.
The Bank’s gross advances grew 23.4% year-on-year and 7.5% quarter-on-quarter to ₹9,755 crore, while disbursements during the quarter rose 36% to ₹1,095 crore from ₹805 crore a year earlier. Total deposits increased 16.2% to ₹10,831 crore, with CASA deposits at ₹3,734 crore, taking the CASA ratio to 34.5% from 33.9% a year ago. Around 97% of the Bank’s loan book remains secured, in line with its retail-focused lending approach.
Profitability improved across key metrics during the quarter. Net interest income grew 24.2% to ₹138.7 crore, and net interest margin rose to 4.24% from 4.04% a year earlier. Pre-provision operating profit increased 30.9% to ₹67.92 crore, while the cost-to-income ratio improved to 59.8% from 61.7%. Return on assets rose to 1.39% from 1.26%.
Asset quality also strengthened, with gross NPA declining to 2.36% from 2.47% in the previous quarter and 2.70% a year ago, and net NPA easing to 1.12% from 1.14% in the previous quarter and 1.38% a year ago. Collection efficiency stood at 99.5%. The Bank maintained a strong capital position, with capital adequacy at 20.78% and Tier I capital at 18.45%.
Speaking on the performance, Sarvjit Singh Samra, Managing Director & CEO, said, “Our Q2 FY27 performance reflects the strength of our established banking model and the benefits of disciplined, consistent execution. Our continued focus on relationship-led banking, prudent lending and customer engagement is translating into healthy business growth, improved profitability and stronger asset quality. These outcomes reinforce our confidence in our strategy and our ability to create sustainable long-term value. The gross advances recorded an increase of 23.4% year-on-year and 7.5% quarter-on-quarter to ₹9,755 crore as of September 30, 2026. The disbursements during the quarter increased to ₹1,095 crores, as compared to ₹805 crores in Q2FY26, reflecting a growth of 36.0%.”
He said, “Total deposits increased to ₹10,831 crores as of September 30, 2026, registering a year-on-year growth of 16.2%. CASA deposits stood at ₹3,734 crores, representing 34.5% of total deposits, as compared to 33.9% as of September 30, 2025, reflecting continued strength of the Bank’s retail deposit franchise and deeper customer engagement across its branch network. Asset quality further improved, with Gross NPA reducing to 2.36% from 2.47% in the previous quarter and 2.70% a year ago, while Net NPA improved to 1.12% from 1.14% in the previous quarter and 1.38% a year ago. The loan book remains well-diversified, with ~97% being secured, consistent with the Bank’s prudent, retail-focused secured lending philosophy.”
During Q2FY27, Net Interest Margin improved to 4.24% against 4.21% in the previous quarter and 4.04% a year ago, with Net Interest Income growing 24.2% year-on-year to ₹138.7 crore. Non-interest income rose to 0.92% of average total assets against 0.82% in the previous quarter and 0.86% a year ago, reflecting the Bank’s diversified earnings profile. Operating margins remained strong at 2.08% against 2.04% in the previous quarter and 1.88% a year ago, while the cost-to-income ratio improved to 59.8% from 61.7% a year back. Pre-Provision Operating Profit increased by 30.9% year-on-year to ₹67.9 crore and Profit After Tax increased by 30.7% year-on-year to ₹45.6 crore. Return on Assets stood at 1.39%, reflecting the overall improvement in operating performance.
He added, “As we progress towards ₹16,000+ crore loan book (Vision 2029), our priorities remain clear; deepening our presence in existing markets along with expanding into contiguous geographies; continue strengthening retail-driven deposit franchise and secured & retail-focused lending practices; serving the aspiring middle-income customer segment. We remain committed of disciplined growth, preserving asset quality, enhancing operating efficiency and creating sustainable long-term value for all our stakeholders.”
Headquartered in Jalandhar, Punjab, Capital Small Finance Bank began operations as India’s first Small Finance Bank on April 24, 2016, following its conversion from Capital Local Area Bank. With 222 branches across five states and two Union Territories, the Bank serves the middle-income segment through a secured, diversified lending model with a strong focus on rural and semi-urban markets.
