Transcript of Earning Call - March 31, 2026
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Capital Small Finance Bank reported Q4 FY '26 results with total deposits crossing ₹10,000 crores (₹10,018 crores, up 20% YoY) and gross advances at ₹8,687 crores (up 21% YoY). Asset quality improved with GNPA at 2.5% and NNPA at 1.2%. NIM improved to 4.1% from 4.0% in Q3, while PAT for Q4 stood at ₹40 crores (up 17% YoY). The bank guided for 22%+ loan growth in FY '27 with a target of ₹16,000 crores advances by FY '29. MSME/business segment was the key growth driver (46% YoY), while agriculture NPA remained static at 2.76% due to seasonal factors. Cost of deposits declined to 5.75% from 5.86% in Q3, with 53% of term deposits due for repricing in the next two quarters. Branch network expanded to 211 branches, and the bank targets 235 branches by FY '27-end and 300+ by FY '29.
The bank's strong deposit growth, improving NIM trajectory, and clear multi-year growth targets (22%+ advances growth, ROTA 1.35-1.4% for FY '27) position it well for continued profitability expansion. The improving cost of deposits from repricing and stable asset quality provide confidence in margin improvement over the next 2-3 quarters.