Capital Small Finance Bank Q1 net profit rises 29% to ₹41.3 crore
Capital Small Finance Bank reported a 29% rise in Q1 net profit to ₹41.3 crore, driven by a 22% growth in advances to ₹9,074 crore and improved asset quality with GNPA at 2.47%.
*this image is generated using AI for illustrative purposes only.
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 net interest income grew by 22% year-on-year to ₹134 crore, driven by a 22% expansion in the loan book which reached ₹9,074 crore. Operating profit before provisions and contingencies rose 23.1% to ₹64.7 crore, reflecting improved operational efficiency and asset quality.
The bank's asset quality showed improvement, with the gross non-performing assets (GNPA) ratio standing at 2.47% in Q1FY27, compared to 2.75% in Q1FY26 and 2.54% in Q4FY26. The net NPA ratio also improved to 1.14% from 1.39% a year ago. Provisions and contingencies for the quarter increased by 15% year-on-year to ₹23 crore, while the provision coverage ratio rose to 54.51% from 51.89% in the preceding quarter.
Financial Performance
The bank's total income for Q1FY27 stood at ₹160 crore, up from ₹133 crore in the same quarter last year. Interest earned increased to ₹134 crore, while other income grew 13% to ₹26 crore. Operating expenses were reported at ₹95 crore, a 17% rise year-on-year, primarily due to business expansion. The net interest margin (NIM) improved to 4.21% from 4.06% in Q1FY26, and the return on assets (ROA) strengthened to 1.30% from 1.18%.
| Key Financials (INR Crore) | Q1FY27 | Q1FY26 | YoY Growth (%) |
|---|---|---|---|
| Net Interest Income | 134 | 110 | 22% |
| Other Income | 26 | 23 | 13% |
| Operating Expenses | 95 | 81 | 17% |
| Pre-Provision Operating Profit | 64.7 | 53 | 23.1% |
| Provisions & Contingencies | 23 | 20 | 15% |
| Net Profit | 41.3 | 32 | 29% |
Balance Sheet and Capital
Deposits grew by 16.3% year-on-year to ₹10,596 crore, with the Current Account Savings Account (CASA) ratio at 36.7%. The bank's capital adequacy ratio remained robust at 21.58%, with a Tier-1 capital ratio of 19.17%. Borrowings increased significantly to ₹686 crore from ₹488 crore in the prior year, while total assets reached ₹12,949 crore, a 17% increase compared to Q1FY26.
The Board of Directors approved the financial results at its meeting held on July 23, 2026. The results were reviewed by the Audit Committee on July 22, 2026, and the Statutory Auditors issued an unmodified limited review report. During the quarter, the bank allotted 46,414 equity shares pursuant to the exercise of options under employee stock option schemes.
Historical Stock Returns for Capital Small Finance Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.38% | +0.99% | +5.94% | +17.98% | -6.52% | -31.14% |
Can Capital Small Finance Bank sustain the current Net Interest Margin expansion given the rising cost of funds?
What strategic initiatives will the bank undertake to further improve the CASA ratio beyond the current 36.7%?
How does the bank plan to utilize its robust capital adequacy ratio of 21.58% to fuel future growth?
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