2026-07-25 02:55:31
Latest Post
TANFAC Industries Reports Q1 FY27 Net Profit of ₹16.85 Crore; Operational Revenue Up 6.3% YoY to ₹187.18 Crore
New India Assurance Reports Q1 FY27 Net Loss of ₹243.94 Crore; Gross Written Premium Rises 2.9% YoY to ₹13,835 Crore
NTPC Consolidated Q1 FY27 Net Profit Rises 12.9% YoY to ₹6,896 Crore; Operational Revenue Up 7.8% at ₹50,741 Crore
Neogen Chemicals Reports Q1 FY27 Net Profit Surge of 66.8% YoY to ₹17.11 Crore; Operational Revenue Up 34% at ₹250.29 Crore
Arihant Capital Markets Reports Q1 FY27 Net Profit of ₹21.49 Crore, Up 69.2% YoY; Operational Revenue Jumps 53.5%
Stock Report
Capital Small Finance Bank Q1 FY27 Net Profit Rises 29% YoY to ₹41.3 Crore; Advances Surge 22%
Posted On : 2026-07-24 10:36:21( TIMEZONE : IST )
Capital Small Finance Bank Limited today announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27). The bank registered all-round growth across its lending and deposit franchises, driven by expanding margins, improving asset quality, and robust bottom-line growth.
Net Profit After Tax (PAT) for the quarter expanded 29.0% year-on-year to ₹41.3 crore, up from ₹32.0 crore in Q1 FY26.
Balance Sheet Growth and Liability Traction
The bank recorded double-digit expansion across both sides of its balance sheet:
Gross Advances: Grew 22.0% year-on-year to reach ₹9,074 crore, supported by quarterly disbursements of ₹1,009 crore (up 16.5% YoY).
Total Deposits: Increased 16.3% year-on-year to ₹10,596 crore.
CASA Ratio: Improved sequentially to 36.7%, up 200 basis points from 34.7% in Q4 FY26.
Operating Performance and Profitability Metrics
Pre-Provision Operating Profit (PPOP): Rose 23.1% year-on-year to ₹64.7 crore.
Net Interest Margin (NIM): Expanded to 4.21%, compared to 4.06% in Q1 FY26.
Return on Assets (ROA): Improved to 1.30%, up from 1.18% in the year-ago period.
Asset Quality and Capital Position
Capital Small Finance Bank recorded improvements in its credit quality indicators both sequentially and year-on-year:
Gross NPA (GNPA): Declined to 2.47%, compared to 2.54% in Q4 FY26 and 2.75% in Q1 FY26.
Net NPA (NNPA): Improved to 1.14%, compared to 1.24% in Q4 FY26 and 1.39% in Q1 FY26.
Capital Adequacy Ratio (CRAR): Stood strong at 21.58%, with Tier-I capital at 19.17%, providing substantial room to support future credit expansion.
Strategic Outlook & Vision 2029
The bank currently operates 216 branches across 5 states and 2 Union Territories, continuing its focus on retail-led secured lending and middle-income customer segments. Management noted that the performance in Q1 FY27 aligns with its "Vision 2029" roadmap, which targets a total loan book exceeding ₹16,000 crore by FY29.
Mr. Sarvjit Singh Samra, Managing Director & CEO "The Bank commenced the financial year on strong footing, with healthy advance growth in Q1FY27. The gross advances stood at ₹9,074 crores as of June 30, 2026, reflecting a year-on-year growth of 22.0% and quarter-on-quarter growth of 4.5%. The disbursements during the quarter increased to ₹1,009 crores, as compared to ₹865 crores in Q1FY26 reflecting a growth of 16.5%.
Total deposits increased to ₹10,596 crores as of June 30, 2026 registering a year-on-year growth of 16.3% and quarter-on-quarter growth of 5.8%. The CASA ratio remained healthy and stood at 36.7% as of June 30, 2026, as compared to 34.7% as of March 31, 2026 and 35.9% as of June 30, 2025, reflecting continued strengthening of the Bank's retail deposit franchise and deeper customer engagement across its branch network.
Asset quality continued to improve, with Gross NPA reducing to 2.47% from 2.54% in the previous quarter and 2.75% a year ago, while Net NPA improved to 1.14% from 1.24% in the previous quarter and 1.39% a year ago. The Provision Coverage Ratio (PCR) increased to 54.5% against 51.9% during the previous quarter. The loan book remains well-diversified, with ~98% being secured, consistent with the Bank's prudent, retail-focused lending philosophy.
Net Interest Margin improved to 4.21% against 4.06% in the previous quarter and 4.06% in a year ago. The same is supported by decline in deposit cost on repricing, coupled with acceleration in the CD ratio.
Non-interest income remained at 0.82% of average total assets, reflecting the Bank's diversified earnings profile and continued contribution from fee-based businesses. Operating margins remained strong at 2.04% against 1.94% a year ago. Pre-Provision Operating Profit increased by 23.1% year-onyear to ₹64.7 crore and Profit After Tax increased by 29.0% year-on-year to ₹41.3 crore. Return on Assets stood at 1.30%, reflecting the overall improvement in operating performance.
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."
