Capital Small Finance Bank Reports Strong Q2 FY27; Profit Surges 30.7%, Gross Advances Up 23.4%

Capital Small Finance Bank Limited disclosed its unaudited financial results for Q2 FY27 and the half year ending September 30, 2026, on October 29, 2026. The bank experienced robust growth, with loan advances expanding by 23.4% year-on-year to ₹9,755 crore, and total deposits up 16.2% to ₹10,831 crore as of the end of September 2026.

Profit Before Tax (PAT) for the quarter saw a notable surge to ₹45.61 crore, marking a 30.7% increase from ₹34.89 crore in the same period last year, while for the half year the figure reached ₹86.91 crore, a 29.9% improvement from ₹66.90 crore in H1 FY26. Asset quality also improved, with Gross Non-Performing Assets (GNPA) falling to 2.36% from 2.47% in the previous quarter, and Net Non-Performing Assets (NNPA) decreasing to 1.12% from 1.14% in the prior quarter.

Operating metrics improved as well, with Pre-Provision Operating Profit (PPOP) increasing by 30.9% to ₹67.92 crore, and the Net Interest Margin (NIM) rising to 4.24% from 4.04% in Q2 FY26. Return on Assets (ROA) was up to 1.39% year-on-year. Managing Director and CEO Sarvjit Singh Samra highlighted the bank's strong performance as a testament to its banking model, disciplined execution, relationship-led banking, prudent lending, and customer engagement, noting that these factors were contributing to healthy business growth, improved profitability, and stronger asset quality. The bank operates 222 branches across five states and two Union Territories.