Capital Small Finance Bank Limited (CSFB) has released the transcript of its earnings conference call for the period ended December 31, 2025. The call, held on January 30, 2026, provided insights into the bank's performance and the prevailing economic environment. During Q3 FY26, India's economy showed stability with real GDP growth at 7%, supported by domestic consumption and rural demand. Inflation remained benign within the RBI's comfort range, aiding business sentiment. The Reserve Bank of India reduced the repo rate to 5.25% to support growth. The banking sector experienced healthy growth in advances, driven by retail, MSME, and agriculture segments. CSFB's business model, with its strong presence in semi-urban and rural markets and a predominantly secured, retail-focused loan book, is well-positioned to benefit from this trend. Financially, for Q3 FY26, CSFB reported total deposits of ₹9,931 crore, a 18.5% year-on-year growth, with CASA at 35.9%. Gross advances grew to ₹8,164 crore, up 19.8% year-on-year. Quarterly disbursements rose to ₹919 crore, a 25% year-on-year increase. Asset quality remained stable with gross NPAs at 2.68% and net NPAs at 1.35%. The bank plans to organically grow its secured loan book by over 20% for FY26 and aims for an advances book exceeding ₹16,000 crore by FY29. CSFB also targets expanding its branch network to over 300 branches by FY29. The bank anticipates NIM expansion supported by moderation in deposit costs and an improving CD ratio. Aims are set for ROA expansion to 1.6% plus and ROE expansion of 15% plus by FY29.
