Capital Small Finance Bank announced Q1FY26 results Gross Advances rise by 16.4% YoY and 3.5% QoQ to Rs 7,437 crore. Disbursements increases 15% YoY to Rs 865 crore. Deposits up 17.1% YoY and 9.5% QoQ to Rs 9,110 crore. Profit After Tax increases 7% YoY to Rs 32 crore. Non-Interest Income and Operating profit rise by 38% and 24% YoY to Rs 23 crore and Rs 53 crore, respectively. Net Interest Margin (NIM) stood at 4.1% against 4.1% in Q4FY25. ROA stood at 1.2% against 1.3% in Q1FY25. GNPA / NNPA maintained at 2.7% / 1.4% respectively, against 2.7% / 1.3% in Q1FY25. Sarvjit Singh Samra, Managing Directors & CEO of Capital Small Finance Bank, said: “The quarter was marked by declining interest rate, accommodating monetary policy and elevated asset quality concerns in certain segments. The Bank remained focused on building a granular, high-quality loan book—prioritising segments with stable repayment behaviour and longterm value, rather than pursuing volume in riskier or unsecured asset classes. Further, despite broader industry shift of customer to term deposits, the Bank continue to maintain a healthy CASA share, reflecting strong retail deposit franchise.” “Total deposits increased to Rs 9,110 crore, registering a YoY growth of 17.1% and a QoQ growth of 9.5%. CASA stood healthy at 35.9% as of June 30, 2025. The gross advances of the Bank stood at Rs 7,437 crore, reflecting YoY growth of 16.4% and QoQ growth of 3.5%. The disbursements rose to Rs 865 crore, up from Rs 754 crore in Q1FY25, YoY growth of 15%. The loan book remains well-diversified, with 99.8% being secured with Zero direct MFI exposure, in line with the Bank’s retail-centric lending approach. The Bank has maintained net interest margin (NIM) of 4.1% (4.1% in Q4FY25), despite the declining interest rate regime. The operating profit (PPOP) has grown by 24%, supported by increase in non-interest income by 38% and reduction in cost-to-income ratio to 60.5% (62.6% for Q4FY25). The profit after tax rose to Rs 32 crore, registering growth of 7% YoY.” he elaborated. “The asset quality remained stable, with gross NPAs at 2.7% as of June 30, 2025, unchanged on a YoY basis and marginally higher than 2.6% in Q4FY25. The net NPAs for the quarter ended June 30, 2025 at 1.4%. Overall asset quality remained strong.” Result PDF