Capital Small Finance Bank Q2 FY26 Advances Jump 17.7% YoY; Stock Gains 2.26% in Trade

Mumbai, October 3, 2025 – Capital Small Finance Bank Limited (NSE: CAPITALSFB, BSE: 544120) reported strong business growth for the quarter ended September 30, 2025, posting healthy year-on-year (YoY) gains in both advances and deposits. The stock was trading at ₹289.80, up 2.26% in early trading today, compared to its previous close of ₹283.40.

As of October 3, the share was closed at ₹286.05, up ₹2.65 (0.94%) from its previous close of ₹283.40. The share opened at ₹283.40, and by the end of the day, it had reached a high of ₹290.00 and a low of ₹283.20.

Key Business Highlights

As of September 30, 2025, gross advances totalled ₹7,907 crore, representing a 6.3% quarter-over-quarter (QoQ) increase and a 17.7% year-over-year (YoY) rise. Total deposits climbed to ₹9,317 crore, or up 2.3% QoQ, and up 19.8% YoY. Gross NPLs stood reasonably steady at 2.7%.

Segment Performance

• Loan Portfolio: Advances were ₹7,907 crore, which is an increase of 17.7% YoY and 6.3% QoQ. Disbursement levels rose to ₹805 crore during Q2 FY26, or 36.2% from Q2 FY25 of ₹591 crore. The loan book remains secured at 99%, reflecting the bank’s retail-driven lending strategy.
• Quality of Assets: Gross NPA stayed consistent at 2.7% and is the same as Q1 FY26, only slightly higher than 2.6% from a year ago. The bank believes this was a reflection of strong recovery and conservative underwriting practices.
• Deposits rose to ₹9,317 crore, with a 19.8% year-on-year growth and a 2.3% quarter-on-quarter increase. The CASA ratio was at 33.9%, slightly down from 35.9% in Q1 FY26; nevertheless, the bank noted significant depositor stickiness despite a trend in the industry towards term deposits.
• Liquidity & Ratios: The average credit-deposit ratio stood at 81.5%, up from 80.9% in Q1 FY26. Liquidity coverage ratio (LCR) was robust at 234.9%, providing ample room for expansion.

Management Commentary

The bank noted that its growth trajectory was supported by retail-centric secured lending and a stable deposit base, underpinned by franchise trust. Management emphasised continued focus on asset quality and liquidity buffers, alongside sustainable business growth.

Capital Small Finance Bank Limited, listed on NSE and BSE since February 14, 2024, operates in the “Other Bank” category. The bank serves a diverse customer base, focusing on secured retail lending and deposit mobilisation, while maintaining strong capital adequacy and liquidity positions.

REF: https://nsearchives.nseindia.com/corporate/CAPITALSFB_03102025114217_Businessupdatesigned.pdf

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