Capital Small Finance Bank Q4 FY26: Growth Held Up, Margins Show Early Lift

Gross advances were 8,687 crores (21% YoY), deposits were 10,018 crores (20% YoY), disbursements were 919 crores (20% YoY), and PAT was 40 crores (17% YoY).

Gross NPA was 2.54% and Net NPA was 1.24% as of March 31, 2026. Provision coverage ratio was reported at 51.9% in Q4 FY26.

AUM mix disclosed: Agriculture 28%, MSME and other business loans 25%, Corporate loans 14%, LAP and other mortgage loans 14%, Housing loans 11%, Consumption and other loans 7%.

NIM was 4.06% in Q4 FY26 versus 4.01% in Q3 FY26. Cost of deposits declined to 5.75% in Q4 FY26 from 5.86% in Q3 FY26.

Management guided 22% plus loan book growth for FY27, RoA of 1.35% to 1.4% for FY27, and targets of advance book 16,000 crores plus, RoA 1.6% plus and RoE 15% plus by FY29.

The bank had 211 branches across five states and two union territories as of March 2026, and management indicated targets of 235 branches by end of FY27 and 300 plus branches by FY29.

Management said it was evaluating the new ECL guidance and its initial view was that the transition would be P&L neutral to P&L positive, not P&L negative.