Capital Small Finance Bank reported a strong performance for the quarter ended December 31, 2024. The bank posted a net profit of ₹34.05 crore, marking a 62% year-on-year (YoY) increase from ₹20.93 crore in the corresponding quarter last year.
Financial Performance Highlights
- Total Income: ₹253.13 crore, up 13.7% YoY from ₹224.25 crore.
- Net Interest Income (NII): ₹234.97 crore, registering a 15.1% YoY growth from ₹204.15 crore.
- Net Interest Margin (NIM): Improved to 4.78%.
- Operating Profit: ₹47.8 crore, up 19.3% YoY.
- Gross NPA: Stood at 2.67%, improving from 2.97% last year.
- Net NPA: Reduced to 1.35% from 1.53% YoY.
The bank’s total expenditure stood at ₹205.33 crore, marking an increase from ₹182.38 crore in Q3 FY24, primarily driven by higher employee costs and operating expenses. Provisions and contingencies were at ₹2.16 crore, reflecting a stable credit quality trend.
Strong Asset Quality and Growth Outlook
Despite an evolving interest rate environment, Capital Small Finance Bank continued to demonstrate steady growth in interest income and improved asset quality. The gross non-performing assets (NPA) ratio declined to 2.67%, reflecting improved recoveries and prudent risk management. The bank’s net NPA ratio also improved to 1.35%, showcasing enhanced asset quality and credit discipline.
With a strong capital base and improving net interest margins, the bank remains well-positioned for sustained growth in the upcoming quarters.
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