The Bank continues to focus on building a granular, secured, and high-quality retail loan book, supported by prudent underwriting and strong recovery mechanisms.
FinTech BizNews Service
Mumbai, July 3, 2025: Capital Small Finance Bank Limited continues to demonstrate strong growth momentum for the quarter ended June 30, 2025 across key metrics, with stable asset quality and a robust deposit franchise. Below are the key business highlights of the bank as of Q1FY26.
Key Highlights (Q1FY26):
The Bank continues to focus on building a granular, secured, and high-quality retail loan book, supported by prudent underwriting and strong recovery mechanisms.
Management Commentary
🏦 Loan Portfolio
As of June 30, 2025, the Bank’s gross advances stood at Rs7,437 crores, reflecting a year-on-year (Y-o-Y) growth
of 16.4% and quarter-on-quarter (Q-o-Q) growth of ~4%. The Disbursements during the quarter rose to Rs865
crores, up from Rs754 crores in Q1FY25 (i.e. growth of ~15%). The loan book remains well-diversified, with
99.8% being secured, in line with the Bank’s retail-centric lending approach.
The period 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 long-term value, rather than pursuing volume in
riskier or unsecured asset classes.
📊 Asset Quality
The asset quality remained stable, with Gross NPAs stood at 2.7% as of June 30, 2025, unchanged on a Y-o-Y
basis and marginally higher than 2.6% in Q4 FY25. This reflects the Bank’s consistent emphasis on prudent
underwriting, robust recovery mechanism, and a well-secured, diversified & granular loan book that continues
to demonstrate strong repayment behaviour.
💰 Deposits
The total deposits of the Bank aggregated to Rs9,110 crores registering a Y-o-Y growth of 17.1% and a Q-o-Q
growth of 9.5%. The CASA ratio stood at healthy levels of 35.9% as of June 30, 2025, against 36.9% as of March
31, 2025. Despite broader industry shift of customer to term deposits, the Bank continue to maintain healthy
CASA share, reflecting strong retail deposit franchise.
🔁 Loan-to-Deposit & Liquidity Ratio
The average^ CD ratio of the Bank for the quarter ended June 30, 2025 stood at 80.9% against 82.5% for the
quarter ended March 31, 2025 and 79.6% for the quarter ended June 30, 2024. The LCR of the Bank stood at
214.7% for the quarter ended June 30, 2025. The same along with higher capital adequacy ratio, provides
sufficient leg room for growth of the Bank.
