Capital Small Finance Bank Limited has announced the convening of its 27th Annual General Meeting (AGM) on Thursday, June 25, 2026, at 04:00 P.M. (IST), to be held exclusively through Video Conferencing (VC) / Other Audio Visual Means (OAVM), without the physical presence of members at a common venue. The announcement was made pursuant to Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with newspaper advertisements published in Business Standard (English edition) and Nawan Zamana (Punjabi edition) on May 08, 2026.

AGM Schedule and Participation Details

The 27th AGM has been convened in compliance with the Companies Act, 2013, applicable SEBI regulations, and the Ministry of Corporate Affairs (MCA) General Circular 03/2025 dated September 22, 2025, along with earlier circulars issued in this regard. Members can join and participate solely through the VC/OAVM facility, and those participating through this mode shall be counted for the purpose of reckoning the quorum under Section 103 of the Act.

The AGM Notice, along with the Annual Report of the Bank for Financial Year 2025-26 — including financial statements for the year ended March 31, 2026 — will be sent only through electronic mode (by email) to members whose names appear in the Register of Members / Beneficial Owners maintained by the Depositories as on the book closure date of May 22, 2026, and whose e-mail addresses are registered with the Bank or Depositories. Members who have not registered their email IDs will receive a letter providing a web-link for accessing the Annual Report.

Remote E-Voting Schedule

The Bank has provided a remote e-voting facility for members who have not registered their email addresses, enabling them to cast their votes prior to or during the AGM. The schedule for remote e-voting is as follows:

Dividend Recommendation and Record Date

The Board of Directors, at its meeting held on April 29, 2026, recommended a final dividend of Rs. 5 per equity share of face value Rs. 10/- each (i.e., 50% of face value) for the financial year ended March 31, 2026. The key dates pertaining to the dividend are as follows:

The final dividend, once approved by members at the 27th AGM, will be paid within the statutory timelines.

Tax Deduction at Source on Dividend

Pursuant to the Finance Act, 2026, dividend income is taxable in the hands of shareholders, and the Bank is required to deduct tax at source from dividend paid to shareholders at prescribed rates. Key requirements for shareholders include:

• PAN Update: Members are requested to update their PAN with Depository Participants (DPs) for shares held in dematerialised form, and with the Registrar and Transfer Agent (MUFG Intime India Private Limited) for shares held in physical form.
• Form No. 121 Submission: Eligible shareholders wishing to avail the benefit of non-deduction of tax at source must submit a yearly declaration in Form No. 121 (erstwhile 15G/15H) in PDF/jpg format by email to cs@capitalbank.in by June 15, 2026.
• Higher TDS Rate: In cases where PAN is not registered, tax will be deducted at a higher rate of 20%.
• Non-Resident Shareholders: Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) and other non-resident shareholders may avail beneficial rates under applicable tax treaties, subject to submission of requisite documents to cs@capitalbank.in on or before June 15, 2026.

Email Registration and Shareholder Actions

Members holding shares in demat form are requested to register their email addresses with their respective Depository Participants. Members holding shares in physical mode who have not registered or updated their email addresses may do so by sending a request to the RTA at investor.helpdesk@in.mps.mufg.com in Form ISR-1. For receiving dividends directly through Electronic Clearing System (ECS) or any other permitted mode, members holding shares in physical mode are requested to register or update their Bank Account details with the Bank's RTA along with a cancelled cheque in original and a self-attested copy of their PAN Card. The AGM Notice and Annual Report will also be made available on the Bank's website ( www.capitalbank.in ), the RTA's website ( www.instavote.linkintime.co.in ), and the websites of BSE Limited ( www.bseindia.com ) and National Stock Exchange of India Limited ( www.nseindia.com ).

Capital Small Finance Bank reported a steady set of financial results for Q4 FY26, with gross advances reaching ₹8,687 crores and total deposits crossing the ₹10,000 crore mark for the first time. The bank, which completed its first decade as a small finance bank, delivered profit after tax of ₹40 crores for the quarter, reflecting 17% year-on-year growth. Management highlighted resilient credit demand across MSME, mortgage, and agriculture segments as key drivers of the quarter's performance.

Key Financial Performance — Q4 FY26 and FY26

The bank's financial metrics for the quarter and full year demonstrated broad-based improvement across income, profitability, and asset quality parameters. The following table summarises the key financial highlights:

Credit Growth and Loan Book Quality

Gross advances stood at ₹8,687 crores as of March 31, 2026, with year-on-year growth of 20.9% and sequential growth of 6.4%. The MSME/business segment was the primary growth driver, expanding 9% quarter-on-quarter and 46% year-on-year, followed by loan against property (LAP), which grew 5% quarter-on-quarter and 19% year-on-year. Fresh disbursements stood at ₹919 crores for the quarter and ₹3,508 crores for the full year, registering growth of 20% and 23% year-on-year, respectively.

The loan book remained predominantly secured, with approximately 98% of the portfolio collateralised, and around 89% of the non-corporate portfolio secured by immovable properties or bank FDRs. The average ticket size of the portfolio stood at ₹18.3 lakhs, compared to ₹17.8 lakhs at the end of Q3 FY26. Geographically, advances outside Punjab constituted 24% of the total portfolio as of March 31, 2026, up from 21% a year earlier, with out-of-Punjab advances growing at more than twice the Punjab growth rate on a year-on-year basis.

Asset Quality Improvement

Asset quality showed improvement during the quarter, with key NPA metrics moving favourably both sequentially and year-on-year.

Management noted that write-offs remained almost nil during the quarter and that the increase in credit cost was driven by a deliberate enhancement of the provision coverage ratio rather than credit losses. The NBFC-MFI segment, which had seen stress earlier in the year, reported an outstanding net NPA of ₹5.49 crores as of Q4 FY26, compared to ₹6.08 crores a quarter earlier, with no fresh lending extended to this segment during the quarter.

Deposits and Liability Franchise

Total deposits crossed ₹10,000 crores for the first time, reaching ₹10,018 crores, representing 20% year-on-year growth. Deposits constituted over 94% of outside liabilities, with the retail deposit share remaining above 90%. The CASA ratio stood at 34.7% as of March 31, 2026, with savings deposits at ₹3,182 crores, constituting 31.76% of total deposits.

The cost of deposits declined to 5.75% in Q4 FY26 from 5.86% in Q3 FY26, reflecting the initial impact of term deposit repricing. Management noted that approximately 53% of the present term deposit book is priced above current offered rates and is due for repricing in Q1 and Q2 of FY27. The average credit-to-deposit ratio stood at 82.3% for the quarter, with the end-of-period ratio at 86.7%, compared to 80.4% and 82.2%, respectively, in Q3 FY26.

Network Expansion and Strategic Outlook

As of March 2026, the bank's branch network expanded to 211 branches across 5 states and 2 union territories, with 77.3% of branches classified as semi-urban and rural (SURU) branches. Management outlined targets to reach 235 branches by the end of FY27 and over 300 branches by FY29. Key strategic and financial guidance shared during the earnings call is summarised below:

Management also indicated that the transition to the Expected Credit Loss (ECL) framework is not expected to be profit-and-loss negative for the bank, with the initial assessment suggesting a P&L neutral to P&L positive outcome. The bank's business correspondent lending channel, which commenced operations in the current quarter with multiple partners, is intended to supplement—but not replace—the primary branch-led business acquisition model, with over 90% to 95% of disbursements expected to continue through the branch network.