Capital SFB Q4: Profit up 17%, NPAs decline; MSME lending gains traction
Published on 29/04/2026 03:42 PM
Capital SFB Q4: Profit up 17%, NPAs decline; MSME lending gains tractionCapital Small Finance Bank reported 17% profit growth in Q4, supported by steady margins and improving asset quality, with MSME lending emerging as a key growth driver.By Sheersh Kapoor April 29, 2026, 3:42:04 PM IST (Published)2 Min ReadCapital Small Finance Bank reported a steady set of March quarter numbers, with earnings growth supported by improving asset quality and a gradual uptick in margins. The lender also flagged strong traction in its MSME portfolio, which continues to underpin its growth strategy.
Net profit for the quarter rose 17% year-on-year to ₹40 crore, compared with ₹34 crore a year ago. Net interest income (NII) also grew at a similar pace, rising 17% to ₹121 crore from ₹103 crore.
Margins saw a marginal improvement, with net interest margin (NIM) inching up to 4.06% from 4.01% in the previous quarter, indicating stable yields and an improving asset mix.
Asset quality strengthened further during the quarter. Gross non-performing assets (GNPA) declined to 2.54% from 2.68% sequentially, while net NPA eased to 1.24% from 1.35%.
The bank’s management highlighted that growth remained broad-based without compromising credit quality. Advances grew 20.9% year-on-year to ₹8,687 crore, while deposits crossed the ₹10,000 crore mark.
The MSME loan book stood at ₹2,209 crore, registering a strong 46% growth, reflecting improving business activity and rising demand for formal credit.
Total income for the quarter rose 16.8% to ₹300 crore, taking the full-year figure to ₹1,149 crore. The bank’s branch network now spans 211 branches across five states and two Union Territories, supporting its focus on deepening presence in semi-urban and rural markets.
Also Read: Federal Bank Q4 Results: One-offs contribute to profit growth; Provisions double, Asset quality better
The lender maintained that its largely secured loan book and zero exposure to unsecured microfinance have helped it stay insulated from segment-specific stress, even as it positions for steady growth in FY27.Continue ReadingTagsearningsQ4 resultsshare market todaySmall Finance Bank