Capital Small Finance Bank has outlined its ambition to increase its loan portfolio to ₹16,000 crore by FY29, a substantial rise from the current ₹7,907 crore. The bank is positioning its growth strategy around its micro, small, and medium enterprises (MSME), mortgage, and agriculture sectors.
As reported, the Jalandhar-based bank witnessed a robust 33 percent year-on-year growth in its MSME segment as of September 30, while the loan against property sector in its mortgage portfolio grew by 22 percent year-on-year. Executive Director Munish Jain emphasized that these three segments are expected to comprise 75-80 percent of the bank’s overall portfolio, aiming for an annual growth rate of 20 percent in the loan book.
Deposits have also shown positive momentum, increasing by 20 percent year-on-year to reach ₹9,317 crore, with a current CASA ratio of 33.9 percent. To support its growth objectives, the bank plans to expand its branch network by 1.5 times by FY29 from its existing 199 branches, focusing on entering new markets in Uttar Pradesh and Gujarat. The goal is to ensure that over 30 percent of its branches are located outside Punjab by 2029, up from the current 17.5 percent.
For the quarter ending September, Capital Small Finance Bank reported a net profit of ₹35 crore, marking a 5 percent year-on-year increase. The net interest margin was recorded at 4.04 percent, with targets set to elevate it to 4.1 percent in the second half of FY26 and above 4.2 percent in FY27. The bank’s asset quality remains stable, as the gross non-performing assets (NPA) improved to 2.70 percent from 2.75 percent in the previous quarter.
In light of the recent increase in priority sector lending requirements to 60 percent, the bank is also considering venturing into the gold loan segment.
As of 1:20 PM, shares of Capital Small Finance Bank Ltd were trading at ₹284, a decrease of 2.85 or 0.99 percent on the NSE.
Published on October 30, 2025.
