Capital Small Finance Bank has announced its unaudited financial results for the quarter ended June 30, 2025 (Q1 FY26), reporting consistent growth across key parameters, reinforcing its position as a stable, retail-focused banking institution.

Sarvjit Singh Samra, Managing Director & CEO, said, "Despite a soft interest rate environment and sectoral asset quality challenges, we remained focused on building a high-quality, secured loan portfolio and retaining a strong CASA ratio. Our strategy continues to prioritise long-term value and disciplined lending."

Key highlights from Q1 FY26:

• Total deposits stood at Rs 91.10 billion, up 17.1% YoY and 9.5% QoQ
• CASA ratio remained strong at 35.9%
• Gross advances reached Rs 74.37 billion, growing 16.4% YoY and 3.5% QoQ
• Disbursements rose to Rs 8.65 billion, up from Rs 7.54 billion YoY (15% growth)
• Loan book is 99.8% secured, with zero direct MFI exposure
• Net Interest Margin (NIM) held steady at 4.1%
• Operating profit (PPOP) grew 24%, aided by a 38% increase in non-interest income
• PAT rose 7% YoY to ₹32 crore
• Asset quality remained stable with GNPA at 2.7% and NNPA at 1.4%

The bank also achieved a reduction in its cost-to-income ratio to 60.5%, down from 62.6% in Q4 FY25.

With a well-diversified, secured loan book and a resilient retail deposit base, Capital Small Finance Bank continues to strengthen its fundamentals while delivering consistent performance.