Capital Small Finance Bank Limited (Capital SFB) reported a steady performance for the quarter ended September 30, 2025, with robust growth in advances, deposits, and profitability despite challenging macro conditions.
The bank’s profit after tax (PAT) rose 4.6% year-on-year to Rs 35 crore, supported by stable margins and healthy credit growth. Gross advances grew 17.7% YoY to Rs 7,907 crore, while total deposits climbed 19.8% YoY to Rs 9,317 crore.
Key highlights: Q2 FY26 performance
| Metric | Q2 FY26 | YoY Change | QoQ Change |
|---|---|---|---|
| Gross Advances | Rs 7,907 crore | +17.7% | +6.3% |
| Deposits | Rs 9,317 crore | +19.8% | +2.3% |
| Disbursements | Rs 805 crore | +36.2% | — |
| Profit After Tax | Rs 35 crore | +4.6% | — |
| ROA | 1.3% | — | (vs 1.2% in Q1 FY26) |
| GNPA / NNPA | 2.70% / 1.38% | Improved | — |
| Capital Adequacy Ratio | 24.2% | — | — |
Management commentary
Commenting on the quarterly performance, Mr. Sarvjit Singh Samra, Managing Director & CEO, said:
“The quarter ended September 30, 2025, was marked by healthy credit offtake and stable margins, reflecting the strength of our core operating model. Our deposit franchise remained strong with CASA at 33.9%, and disbursements grew 36% year-on-year, driven by festive demand and improved business sentiment.”
He added that the bank remains confident about sustaining healthy growth in the second half of FY26 amid a supportive macro backdrop, including benign inflation and festive consumption momentum.
Operational updates
- The bank expanded its branch network to 200 branches across five states and two Union Territories.
- It signed a BC (Business Correspondent) partnership with selected NBFCs with FLDG (First Loss Default Guarantee) cover, targeting high-yield secured loan portfolios.
About the bank
Founded in Jalandhar, Punjab, Capital Small Finance Bank was India’s first small finance bank, commencing operations in April 2016 after converting from Capital Local Area Bank. The bank continues to focus on retail-centric growth with an emphasis on rural and semi-urban markets.
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