Capital Small Finance Bank deposits rise as CASA ratio falls

Capital Small Finance Bank reported deposits of Rs 10,831 crore in Q2FY27, up 16.2% year on year, but its current-account and savings-account, or CASA, balance fell Rs 152 crore sequentially to Rs 3,734 crore. This reduced the CASA ratio to 34.5% from 37% in Q1FY27, despite a lower year-on-year deposit cost of 5.68%.

How fast did Capital Small Finance Bank deposits grow in Q2FY27?

Capital Small Finance Bank’s deposits grew 16.2% year on year to Rs 10,831 crore in Q2FY27 from Rs 9,317 crore in Q2FY26. The increase was Rs 1,514 crore. Deposits also increased 2.2% quarter on quarter from Rs 10,596 crore in Q1FY27, adding Rs 235 crore during the latest quarter.

Capital Small Finance Bank reported Rs 10,018 crore of deposits at FY26, compared with Rs 8,323 crore at FY25 and Rs 7,478 crore at FY24. The presentation states that deposits recorded a 19% compound annual growth rate, or CAGR, from FY16 to FY26, with the deposit base rising from Rs 1,814 crore in FY16. Q2FY27 is an interim reporting point, so its balance is not directly comparable with a full-year closing balance.

Why did Capital Small Finance Bank’s CASA ratio decline?

Capital Small Finance Bank’s CASA ratio declined because CASA balances fell while total deposits increased during Q2FY27. CASA was Rs 3,734 crore at Q2FY27, down from Rs 3,886 crore in Q1FY27, while deposits rose by Rs 235 crore. The Rs 152 crore sequential reduction in CASA moved its share of deposits from 37% to 34.5%.

Capital Small Finance Bank’s Q2FY27 CASA balance remained Rs 573 crore above Rs 3,161 crore in Q2FY26. The presentation puts the average CASA ratio for Q2FY27 at 34.8%, close to the 34.5% closing ratio, and defines CASA as total CASA divided by total deposits. The historical ratio was 42% in FY22 and FY23, then 38% in FY24, 37% in FY25 and 35% in FY26.

How did Capital Small Finance Bank’s funding mix change?

Capital Small Finance Bank’s deposits represented 80.9% of its funding mix in Q2FY27, down from 81.5% in Q2FY26 and 82.5% in FY26. Borrowings accounted for 6.5% in Q2FY27, compared with 5.0% a year earlier and 4.1% at FY26. Deposits nevertheless remained the largest reported funding component.

Capital Small Finance Bank reported shareholders’ funds at 11.4% of the mix in Q2FY27, down from 12.2% in Q2FY26, while other liabilities were unchanged at 1.3%. The presentation describes its deposits as granular and retail-centric, with negligible bulk deposits, and states that retail deposits account for about 90% or more of the deposit pool. It does not disclose borrowing amounts on this page.

What happened to Capital Small Finance Bank’s deposit cost and renewals?

Capital Small Finance Bank’s cost of deposits was 5.68% in Q2FY27, 24 basis points below 5.92% in Q2FY26 but eight basis points above 5.60% in Q1FY27. A basis point is one-hundredth of a percentage point. The Q2FY27 cost was also below 5.85% in FY26 and 5.87% in FY25.

Capital Small Finance Bank stated that interest on savings bank accounts was 3.10% in Q2FY27. Its rollover ratio was 88.8%, compared with 92.1% in Q2FY26 and 91.4% in FY26. The presentation does not define the rollover ratio or provide a product-level breakdown of the overall 5.68% deposit cost between savings, current accounts and term deposits.

Does Capital Small Finance Bank disclose advances or its credit-deposit ratio here?

No, Capital Small Finance Bank does not disclose advances, loan growth or a credit-deposit ratio on the supplied liability page. The page reports Rs 10,831 crore of total deposits, Rs 3,734 crore of CASA and a 34.5% CASA ratio for Q2FY27, but it does not provide the advances balance needed for a comparison with lending.

Capital Small Finance Bank’s supplied pages disclose asset-quality and earnings data, including gross non-performing assets of 2.36%, net non-performing assets of 1.12% and net interest income of Rs 139 crore in Q2FY27. These figures do not establish whether advances grew faster than deposits or whether the credit-deposit ratio increased. Such conclusions require advances data absent from the supplied material.

Conclusion

Capital Small Finance Bank expanded its deposit base by Rs 1,514 crore year on year in Q2FY27, while its funding mix became less CASA-heavy sequentially. Deposits rose by Rs 235 crore from Q1FY27, but CASA fell by Rs 152 crore, taking the closing CASA ratio to 34.5%. Borrowings also formed a larger 6.5% share of funding than the 5.0% reported a year earlier.

The disclosed measures to watch are whether CASA recovers from Rs 3,734 crore, whether deposit cost remains near 5.68% and whether the 88.8% rollover ratio changes. The supplied presentation provides no loan-growth target, credit-deposit target or scheduled funding action. The unresolved issue is how the reported deposit trends compare with advances when Capital Small Finance Bank provides the necessary lending data.