Capital Small Finance Bank Limited — PPTs, 29-04-2025: Investor Presentation

**Financial Highlights:**

Capital Small Finance Bank reported a Profit After Tax (PAT) of ₹132 crores, reflecting a CAGR of 38%, with a quarterly PAT of ₹34 crores, up 21% QoQ. Gross advances reached ₹7,184 crores, indicating an 18% CAGR, while total deposits stood at ₹8,323 crores, growing at 15% CAGR. The bank's asset quality remains strong, with a Gross Non-Performing Asset (GNPA) ratio of 2.6% and a Net Non-Performing Asset (NNPA) ratio of 1.3%.

**Strategic Initiatives & Growth Drivers:**

The bank is enhancing its retail liability franchise, achieving a CASA ratio of 36.9%. Growth strategies include expanding branch networks into contiguous states, improving credit-to-deposit ratios to enhance Net Interest Margin (NIM), and ongoing technology investments for scaling operations and improving customer engagement.

**Business Developments:**

Capital Small Finance Bank is diversifying its credit portfolio with secured loans across Agriculture, Mortgages, and MSME sectors, emphasizing minimal reliance on microfinance with zero direct microfinance exposure.

**Market Position & Competitive Advantage:**

The bank positions itself as the primary banker for middle-income customers, utilizing a relationship banking approach to foster high customer engagement. Its experienced leadership and strong governance frameworks bolster its competitive advantage in the sector.

**Investor Implications:**

Consistent growth in profitability metrics and a strong retail deposit base suggest positive growth potential for investors in Capital Small Finance Bank. However, monitoring execution risks related to aggressive expansion strategies and new market entries is crucial.