Seeds of Growth, Roots of Trust
At Capital Small Finance Bank, our journey reflects a fine balance between aspiration and discipline, built on close customer connect and engagement, prudent lending, and a strong deposit franchise. Over time, these strengths have shaped a stable institution, reflecting our course of steady growth and resilience. A legacy of enduring customer relationship continues to steer our trajectory as we widen our reach and strengthen our presence within India’s banking ecosystem.
We focussed on building right through disciplined execution, consistent decisions, and clear intent. Today, with the seeds of growth sown and roots of trust strengthened, we stand prepared for a faster, more confident growth journey ahead. With disciplined expansion across MSME, mortgage, and agricultural credit, we drive financial inclusion for conventionally underserved segments. By addressing the banking needs of households, farmers, and small businesses, we facilitate broader participation in economic progress while creating scalable growth opportunities.
This momentum is nurtured by the roots of trust that define our institution. Continuous growth of our branch network across proximate markets speaks volumes of the confidence our customers place in us. Alongside this physical presence, we are fortifying our digital capabilities to make banking more accessible, responsive, and efficient, thereby, cementing the backbone of India’s regional economy. At the same time, we continue to strengthen our liability franchise and elevate the stability of our granular funding base.
As we move ahead, we remain focussed on sustaining portfolio quality, improving operational efficiency, and maintaining balance sheet discipline. Across customer touchpoints, the Seeds of Growth we sow and the Roots of Trust we nurture consistently foster a future driven by resilience, inclusion, and lasting value.
Message from the Managing Director & CEO
Growth, for us, goes beyond metrics: it embodies a disciplined pursuit of progress, rooted in trust and thoughtfully cultivated over time. What defined this year was not only scale, but the strength of our foundation—built with trust, discipline and consistency.
FY26 was a defining year shaped as much by the operating environment as by our performance. The Indian economy demonstrated quiet resilience, with rural demand holding firm, sustained government capital expenditure, and a shift in the interest rate cycle supporting credit growth. Within this backdrop, the MSME segment stood out, with improving cash flows and a growing appetite for formal credit—an area we have been steadily building over the years.
Aligned with these trends, Capital Small Finance Bank delivered strong, quality-led growth. Advances grew 20.9% to ₹8,687 crores, while deposits crossed the ₹10,000 crores milestone, reflecting deep customer trust. Importantly, this growth was accompanied by further improvement in asset quality, with GNPA declining. Our zero exposure to direct unsecured microfinance also ensured resilience against sector-specific challenges.
Profitability remained robust, with PPOP at ₹218 crores and PAT at ₹141 crores, despite of exceptional one-time impact due to change in labour codes, highlighting the strength of our operating model. As we look ahead, we remain focussed on sustainable expansion, disciplined risk management, and capturing emerging opportunities with clarity and purpose.
Sarvjit Singh Samra
Managing Director and Chief Executive Officer
MESSAGE from the Executive Director
Endurance in banking franchises is not built on speed alone, but on strength of trust, prudence, and the ability to grow responsibly across cycles.
Ten years as India’s first Small Finance Bank and twenty-six years as a banking institution mark the foundation of our journey, built on trust, consistency, and strong customer relationships. This foundation gives us confidence that the opportunities ahead are significantly larger than those behind us, and we approach this next phase with a clear and ambitious vision.
Our performance in FY26 highlights the strength of a balanced and resilient operating model. Total income rose to ₹1,149 crores, with Q4 profitability showed strong momentum at ₹40 crores PAT, up 17% Y-o-Y. Margins remained largely stable despite a declining interest rate environment, with NIM at 4.1% and RoA of 1.33% in Q4, supported by a well-diversified, secured loan book and favourable shifts in loan and deposit mix.
At the core of this progress are our deep customer connects and personalised approach, which continue to differentiate us as we expand our presence. With strong capital adequacy and ongoing branch expansion, we are well-positioned to scale responsibly, enhance customer experience, and drive growth across segments in the years ahead.
As we advance towards Vision 2029, we remain anchored with a strong belief in: sustainable growth is strongest when it is secured, relationship-driven, disciplined and consistent.
Munish Jain
Executive Director
Key Highlights of Q4
Advances
20.9% 
Y-o-Y
Deposits
20.4%
Y-o-Y
PPOP/PAT
28.2%/17.0%
Y-o-Y Q4 FY26
Disbursements
20.1%
Y-o-Y Q4 FY26
CASA
34.7%
Q4 FY26
Net NPA
1.24% Q4 FY26
1.35% Q3 FY26
Capital SFB @2029
Key Focus Areas
1
Organic Loan Book Growth & Secured Lending
- Targeting segments – MSME, Mortgages and Agriculture.
- Expansion within the secured loan portfolio.
- Initiating partnership-led business, targeting high-yielding secured loan portfolio.
2
Elevating Liability Franchise
- Targeting growth in line, to support advances growth.
- Continue to focus on retail deposit with high share of CASA.
3
Expanding Our Brand Outreach
- Scaling up new branch opening by extending presence into contiguous states (targeting to enter in the state of UP & Gujarat)
- Intensifying penetration in current markets (Haryana, Punjab, Rajasthan & Delhi)
- Targeting 30%+ branch(es) outside Punjab by 2029 (17.5% as on Sep 2025)
4
Strengthening Operational & Profitability Metrics
- Accelerating the credit-to-deposit ratio (average basis) to enhance Net Interest Margin (NIM)
- Improving operating efficiency through scaling and increasing proportion of matured branch mix to optimise operations
Key Outcomes
Growth in Advances
Improvement
in NIM
Improvement in Profitability and RoA
Vision 2029
| Vision | Update Q4FY26 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|
₹8,687 crores |
||||||||||
|
1.24%/0.26% |
||||||||||
|
211 |
||||||||||
|
1.33% 11.4% |
“From Strong to Stronger”
*Calculated as % to total average assets
Numbers have been rounded off wherever applicable
(P): Projected