Q1 2027 Capital Small Finance Bank Ltd Earnings Call Transcript
Key Points
- Capital Small Finance Bank Ltd (NSE:CAPITALSFB) reported a 22% year-on-year growth in gross advances, reaching INR9,074 crore, driven by strong performance in the MSME and business loan segments.
- The bank's total deposits grew by 16% year-on-year to INR10,596 crore, with an improvement in the CASA ratio to 36.7% from 34.7% in March 2026.
- Net interest margin improved to 4.21% from 4.06% in the previous quarter, supported by a decline in deposit costs and an increase in the credit-to-deposit ratio.
- Profit after tax increased by 29% year-on-year to INR41.3 crore, with a return on assets of 1.3%, up from 1.18% in Q1 FY26.
- The bank's capital adequacy ratio stood at a robust 21.6%, providing sufficient headroom for future growth.
- Gross NPA remained relatively high at 4.47%, although there was a slight improvement in net NPA to 1.14%.
- The provision coverage ratio increased, indicating a cautious approach towards potential loan defaults, which could impact profitability.
- The cost-to-income ratio remained high at 59.5%, suggesting room for improvement in operational efficiency.
- There was a slight increase in SMA-2 accounts to 3.11%, indicating some stress in the loan portfolio.
- Non-interest income growth was modest at 13% year-on-year, which may limit overall revenue diversification.
Ladies and gentlemen, good day, and welcome to the Capital Small Finance Bank Limited Q1 FY27 earnings conference call. (Operator Instructions) please note that this conference is being recorded. I now hand the conference over to Mr. Sarvjit Samra from Capital Small Finance Bank Limited for opening remarks. Thank you, and over to you, sir.
Thank you, Avirat. Good morning, everyone, and thank you for joining Capital Small Finance Bank Limited's quarter one financial year '27, earnings call. Our financial results and the investor presentation have been filed with the stock exchanges and are available in the public domain. We trust you have had an opportunity to review the same.
Joining me today are Mr. Munish Jain, Executive Director; Aseem Mahajan, Chief Financial Officer; Raghav Aggarwal, Chief Credit Officer, Branch Banking; Sahil Vijay, Chief Treasury Officer and Investor Relations Lead; Bharati Babutta from our Investor Relations team and
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