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View Claim Ledger →Capital Small Finance Bank Ltd — Q4 FY26
Capital Small Finance Bank delivered a steady Q4 FY26 with PAT of 40 cr (+17% YoY) and NIM improving to 4.06% (+5bps QoQ).
bullish
high
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Capital Small Finance Bank delivered a steady Q4 FY26 with PAT of 40 cr (+17% YoY) and NIM improving to 4.06% (+5bps QoQ). Advances grew 20.9% YoY to ₹8,687 cr, driven by MSME (+46% YoY) and LAP segments, while deposits crossed ₹10,000 cr (+20% YoY). Asset quality remained stable with GNPA at 2.54% and NNPA at 1.24%. Management guided for 22%+ loan growth in FY27, NIM expansion from deposit repricing (53% of term deposits due for repricing in H1), and ROA of 1.35-1.4% for FY27. Key risk: agriculture NPA stickiness (2.76%) could persist if monsoon disappoints, though management cites strong collateral and diversified cropping.
Promises0 met · 2 missedRisks3 trackedTranscriptfull text
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Promises
2 promises
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0 delivered, 0 close, 2 missed.
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Risks
3 risks
Risk Intelligence
Agriculture NPA stickiness
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Transcript
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Gross Advances
₹8,687 cr
+20.9% YoY
Driven by MSME (+46% YoY) and LAP (+19% YoY) segments.
Total Deposits
₹10,008 cr
+20% YoY
CASA stable at 34.5%; retail deposits >90% of total.
Cost of Deposits
5.75%
-11bps QoQ
Declining trend started; 53% of term deposits due for repricing in H1 FY27.
Credit Cost
0.26%
flat YoY
Guided to remain in 0.15-0.25% range for FY27.
What Changed vs Last Quarter
NEW
Loan growth of 22%+ for FY27
Management expects organic secured loan book growth of 22%+ in FY27, with a target of ₹16,000 cr advances by FY29.
NEW
Branch expansion to 235 by FY27 end
Bank plans to add 24 branches in FY27, reaching 235 branches, with a target of 300+ by FY29.
NEW
Credit cost guidance of 0.15-0.25% for FY27
Management expects credit cost to remain in the 0.15-0.25% range for FY27, with a downward bias.
UPDATED
ROA target of 1.35-1.4% for FY27
Return on assets expected to improve to 1.35-1.4% in FY27, driven by NIM expansion and cost optimization.
DROPPED
Advance growth of 20%+ for FY26
Management reiterated 20%+ organic secured loan book growth for FY26, with a medium-term target of ₹16,000 Cr advances by FY29.
DROPPED
NIM expansion of ~10 bps in Q1 FY27
Expect NIM to improve by ~10 bps in Q1 FY27 from deposit repricing benefits, with further improvement in Q2.
DROPPED
300+ branches by FY29
Plan to expand branch network from 203 to 300+ by FY29, focusing on semi-urban and rural markets.
NEW RISK
Geopolitical and monsoon risks
Analyst raised concerns about geopolitical tensions and potential weak monsoon impacting agriculture portfolio; management downplayed citing collateral and irrigation.
NEW RISK
ECL transition impact
New ECL guidelines are still being evaluated; management expects P&L neutral to positive impact but uncertainty remains.
RISK GONE
Elevated SMA 1&2 pool
SMA 1&2 pool stood at 6.46% as of Dec 2025, higher than typical levels, attributed to seasonal agri cash flow lags. Management expects normalization to sub-5% by Mar 2026.
RISK GONE
Competitive pressure on deposit pricing
Intense competition for deposits may limit the pace of cost of deposit reduction, impacting NIM recovery.
Fast read
Guidance and risk preview
Management expects organic secured loan book growth of 22%+ in FY27, with a target of ₹16,000 cr advances by FY29.
Agriculture GNPA remained at 2.76% QoQ, and management expects it to remain rangebound with lower bias, not a sharp decline.
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