Mumbai / Jalandhar, July 25, 2025: Capital Small Finance Bank Ltd, Capital Small Finance Bank Limited announced its unaudited financial results for the quarter ended June 30, 2025 (Q1FY26), reporting continued growth across key business parameters and strengthening its position as a retail-focused banking institution.
Mr. Sarvjit Singh Samra, Managing Directors & CEO of Capital Small Finance Bank, said, “The quarter was marked by declining interest rate, accommodating monetary policy and elevated asset quality concerns in certain segments. The Bank remained focused on building a granular, high quality loan book—prioritising segments with stable repayment behaviour and long-term value, rather than pursuing volume in riskier or unsecured asset classes. Further, despite broader industry shift of customer to term deposits, the Bank continue to maintain a healthy CASA share, reflecting strong retail deposit franchise.”
“Total deposits increased to ₹9,110 crores, registering a Y-o-Y growth of 17.1% and a Q-o-Q growth of 9.5%. CASA stood healthy at 35.9% as of June 30, 2025. The gross advances of the Bank stood at ₹7,437 crores, reflecting Y-o-Y growth of 16.4% and Q-o-Q growth of 3.5%. The disbursements rose to ₹865 crores, up from ₹754 crores in Q1FY25, Y-o-Y growth of 15%. The loan book remains well-diversified, with 99.8% being secured with Zero direct MFI exposure, in line with the Bank’s retail-centric lending approach.
The Bank has maintained net interest margin (NIM) of 4.1% (4.1% in Q4 FY25), despite the declining interest rate regime. The operating profit (PPOP) has grown by 24%, supported by increase in non-interest income by 38% and reduction in cost-to-income ratio to 60.5% (62.6% for Q4FY25). The profit after tax rose to ₹32 crores, registering growth of 7% Y-o-Y.” he elaborated.
“The asset quality remained stable, with gross NPAs at 2.7% as of June 30, 2025, unchanged on a Y-o-Y basis and marginally higher than 2.6% in Q4 FY25. The net NPAs for the quarter ended June 30, 2025 at 1.4%. Overall asset quality remained strong.”