Capital Small Finance Bank Limited — Updates, 29-01-2025: Press Release

**Financial Highlights:**

Capital Small Finance Bank reported an 18% year-on-year increase in Profit After Tax (PAT) for Q3 FY25, reaching ₹34 crores. The Return on Assets (ROA) improved to 1.4%, up from 1.3% in Q3 FY24. Gross advances grew by 19% year-on-year to ₹6,816 crores, while disbursements surged by an impressive 92%. Deposits increased to ₹8,384 crores, reflecting a 12% y-o-y growth, with a Current Account Savings Account (CASA) ratio of 39.1%.

**Strategic Initiatives and Growth Drivers:**

The bank emphasizes a retail-centric approach, with 93.2% of its deposits being retail. The significant rise in gross advances underscores its focus on secured lending, with over 99% being secured and zero direct exposure to microfinance institutions.

**Business Developments:**

Capital Small Finance Bank continues to expand its branch network and product offerings, aiming for a robust retail-focused banking model.

**Market Position and Competitive Advantage:**

As India's first small finance bank, it maintains a strong market presence through its diversified yet secure lending portfolio, focusing on serving the middle-income group and rural areas.

**Investor Implications:**

The bank’s operational metrics and proactive growth strategy indicate a positive outlook, positioning it well for future opportunities and potential growth. Investors should watch closely for further developments in its retail banking initiatives and overall market expansion.