Capital Small Finance Bank will host analysts and institutional investors at the Ashwamedh – Elara India Dialogue 2026 conference. The meeting is scheduled for September 2, 2026, in Mumbai.

Bank officials will conduct one-on-one and group sessions starting at 2:00 pm. The event aims to provide updates on the bank’s performance and strategy to market participants.

Meeting Details

The session forms part of the bank’s compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. Specifically, it falls under Regulation 30, which mandates regular interaction with investors.

Regulatory Compliance

The bank confirmed that no unpublished price-sensitive information will be shared during the interactions. This ensures adherence to insider trading regulations and maintains fair disclosure practices for all stakeholders.

Amit Sharma, Company Secretary and Compliance Officer, issued the intimation on August 25, 2026. He noted that any unforeseen exigencies from the bank or the host could lead to changes in the date or time of the meeting.

Capital Small Finance Bank reported a net profit of ₹41.3 crore for the quarter ended June 30, 2026, marking a 29% increase from ₹32 crore in the corresponding period of the previous year. The bank’s strong start to FY27 was driven by a 22% expansion in its loan book to ₹9,074 crore and robust deposit growth of 16.3% to ₹10,596 crore. This performance underscores the bank’s ability to scale its retail-focused lending model while maintaining asset quality, with gross non-performing assets (GNPA) improving to 2.47%. The results signal sustained momentum in the small finance banking sector, supported by disciplined credit underwriting and expanding franchise reach across five states and two Union Territories.

The Board of Directors approved the unaudited financial results at its meeting held on July 23, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee on July 22, 2026, and the Statutory Auditors issued an unmodified limited review report. Pursuant to Regulation 47 of the SEBI LODR Regulations, 2015, the bank published the extract of its unaudited financial results in 'Business Standard' and 'Nawan Zamana' newspapers on July 24, 2026. During the quarter, the bank allotted 46,414 equity shares pursuant to the exercise of options under employee stock option schemes.

Financial Performance

Capital Small Finance Bank’s pre-provision operating profit (PPOP) rose 23.1% year-on-year to ₹64.7 crore, reflecting improved operational efficiency. Net interest income grew by 22% to ₹134 crore, supported by a net interest margin (NIM) improvement to 4.21% from 4.06% in Q1FY26. This margin expansion was aided by a decline in deposit costs due to repricing and an acceleration in the credit-deposit ratio. Return on assets (ROA) strengthened to 1.30% from 1.18%, indicating better capital utilization. Total income for the quarter stood at ₹160 crore, up from ₹133 crore in Q1FY26.

Asset Quality and Capital Position

Asset quality metrics showed consistent improvement, with GNPA declining to 2.47% from 2.54% in Q4FY26 and 2.75% in Q1FY26. Net NPA improved to 1.14% from 1.24% sequentially and 1.39% annually. The provision coverage ratio rose to 54.51% from 51.89% in the preceding quarter. The bank maintained a robust capital adequacy ratio of 21.58%, with Tier-1 capital at 19.17%, providing ample cushion for future growth. Deposits grew to ₹10,596 crore, with the CASA ratio improving to 36.7% from 34.7% in Q4FY26, highlighting stronger retail deposit traction.

Strategic Outlook and Management Commentary

Sarvjit Singh Samra, Managing Director and CEO, highlighted that gross advances reached ₹9,074 crore as of June 30, 2026, with quarterly disbursements rising 16.5% year-on-year to ₹1,009 crore from ₹865 crore in Q1FY26. He noted that the loan book remains well-diversified, with approximately 98% being secured, aligning with the bank’s prudent, retail-focused lending philosophy. Non-interest income remained stable at 0.82% of average total assets, reflecting diversified earnings from fee-based businesses. Operating margins stood at 2.04%, up from 1.94% a year ago.

The bank is targeting a loan book of ₹16,000 crore or more by FY29, part of its Vision 2029 strategy. With 216 branches across five states and two Union Territories, Capital Small Finance Bank aims to deepen its presence in the middle-income segment through disciplined growth and enhanced customer engagement.

What the Numbers Show

The improvement in NIM to 4.21% was primarily driven by deposit repricing benefits, which lowered the cost of deposits to 5.6% from 5.8% in the previous quarter. Management indicated that while some repricing benefits remain for Q2FY27, the majority have been realized. The bank expects NIM to stabilize around 4.2% for FY27 before expanding further in FY28 and FY29, supported by an increase in the average credit-deposit ratio from 83% to the mid-to-high 80s. Additionally, the bank is actively working towards achieving a net NPA below 1% as part of its medium-term vision, having recently increased provisions to accelerate this trajectory.