Capital Small Finance Bank Q1 FY27 Profit Rises 29% YoY to Rs 41 Crore

Capital Small Finance Bank Limited has released its investor presentation for the first quarter ended June 30, 2026 (Q1 FY27), demonstrating robust core profitability and strong loan expansion. The bank posted a 29% year-on-year (YoY) increase in Net Profit (PAT), bolstered by healthy Net Interest Margins (HIM) and disciplined asset quality management.

Q1 FY27 Financial Highlights

• Net Profit (PAT): Rose 29.0% YoY to ₹41 crore, up from ₹32 crore in Q1 FY26 and ₹40 crore in Q4 FY26.
• Pre-Provision Operating Profit (POP): Surged 23.1% YoY to ₹65 crore compared to ₹53 crore in the year-ago period.
• Net Interest Margin (HIM): Expanded to 4.2%, up from 4.1% in Q1 FY26 and Q4 FY26.
• Return Metrics: Return on Assets (ROA) expanded to 1.30% (vs 1.18% in Q1 FY26), while Return on Equity (ROE) climbed to 11.20% (vs 9.43% in Q1 FY26).

Strong Growth in Advances & Deposit Franchise

• Loan Book Growth: Total advances grew 22.0% YoY and 4.5% QoQ to reach ₹9,074 crore. The MSME sector served as a prominent growth driver, expanding 49% YoY.
• Deposits: Total deposits grew 16.3% YoY and 5.8% QoQ to ₹10,596 crore.
• CASA & Cost of Funds: The CASA ratio improved to 36.7% from 35.9% in Q1 FY26, while the cost of deposits moderated to 5.6% from 5.9% YoY.

Asset Quality Continues to Strengthen

Capital Small Finance Bank Limited reported asset quality gains across all key metrics:

• Gross NPA (GPA): Improved to 2.47%, down from 2.54% in Q4 FY26 and 2.75% in Q1 FY26.
• Net NPA (NPA): Reduced to 1.14%, compared to 1.24% in Q4 FY26 and 1.39% in Q1 FY26.
• Provision Coverage Ratio (PCR): Strengthened to 54.51%, up from 51.89% in the preceding quarter.

With 97.4% secured exposure and zero direct microfinance risks, the bank remains focused on sustaining robust balance sheet growth in its middle-income target segments.