Capital SFB Jumps 4% as Q1 Advances Grow 22%

Capital Small Finance Bank shares climbed on Thursday, touching an intraday high of Rs 285.95 after strong Q1 business numbers.

The bank’s gross advances rose 22% year on year to ₹9,074 crore, up from ₹7,437 crore a year earlier. On a quarter on quarter basis, advances grew 4.5% from ₹8,687 crore in the March quarter.

This shows that loan demand has stayed strong even as the new financial year begins. Deposits also grew, rising 16.3% year on year to ₹10,596 crore from ₹9,110 crore in the same quarter last year.

Sequentially, deposits were up 5.8% from ₹10,018 crore in March, growing a touch faster than advances this quarter.

The bank’s average credit to deposit ratio for the quarter stood at 83.1%, compared with 82.3% in the March quarter and 80.9% a year ago.

In simple terms, this ratio shows how much of the bank’s deposit base is being lent out on average, and it has been on a broadly rising trend over the past year. Asset quality improved as well.

The bank’s gross non performing asset ratio, which tracks the share of loans where repayment is overdue, eased to 2.47% from 2.54% in March and 2.75% a year back.

Around 98% of the loan book remains secured, meaning most loans are backed by collateral such as property, which typically lowers risk for the bank.

Loan disbursements during the quarter rose 16.5% year on year to ₹1,009 crore from ₹865 crore in the same period last year.

The bank’s CASA ratio, which reflects the share of low cost current and savings account deposits, improved to 36.7% from 34.7% in the previous quarter and 35.9% a year earlier.

A higher CASA ratio generally helps a bank keep its borrowing costs lower. On the corporate side, the bank had earlier approved a final dividend of ₹5 per share in June 2026.

It has also laid out a Vision 2029 roadmap, under which it aims to grow its advances book to ₹16,000 crore and expand its branch network to over 300 locations over the next three years.

It is worth noting that these June quarter numbers are provisional at this stage. They are subject to a limited review by the bank’s statutory auditors and further approval from its audit committee and board before being finalised.

As of 11:30 am on Thursday, July 2, Capital Small Finance Bank shares were trading at ₹281.50 on the NSE, up ₹6.10 or 2.21% from the previous close of ₹275.40.

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