Capital Small Finance Bank Limited — PPTs, 24-07-2025: Investor Presentation

**Financial Highlights:**

Capital Small Finance Bank reported strong Q1FY26 results. Total deposits grew 17.1% YoY to ₹9,110 Cr (CASA 35.9%). Gross advances rose 16.4% YoY to ₹7,437 Cr, with disbursements up 15% YoY to ₹865 Cr. NIM remained stable at 4.1%. Operating profit jumped 24% (non-interest income +38%, cost-to-income 60.5%). PAT hit ₹32 Cr (+7% YoY). Asset quality stable: Gross NPAs 2.7%, Net NPAs 1.4%.

**Strategic Initiatives & Growth Drivers:**

The bank plans organic loan book growth focusing on secured lending in MSME, Mortgages, and Agriculture. It aims to boost retail deposit growth and sustain CASA. Operational efficiency will improve via increased credit-to-deposit ratio and bancassurance. Brand outreach includes scaling new branches, expanding to contiguous states, and enhancing digital engagement.

**Market Position & Competitive Advantage:**

The bank targets the middle-income segment with a highly secured (99.8%) and diversified loan book (Avg Ticket Size ₹1.66 Cr), maintaining zero direct MFI exposure. Its retail-focused liability strategy ensures healthy CASA and low cost of funds. Strong asset quality, low write-offs, and robust credit assessment underscore effective risk management. The bank prioritizes being a primary banker and enhancing digital transactions.

**Investor Implications:**

These updates indicate positive growth potential, supported by consistent business expansion, stable asset quality, and strategic operational improvements.