Capital Small Finance Bank has reported a significant increase in its profit after tax in Q3 FY23. The bank’s profit after tax rose 18% year-on-year to Rs 34 crore, driven by growth in its gross advances and deposits. Gross advances increased 19% year-on-year to Rs 6,816 crore, with over 99% of these advances being secured and zero direct exposure to micro-finance institutions (MFIs). Deposits also rose 12% year-on-year to Rs 8,384 crore, with 93.2% being retail deposits.

The bank’s gross non-performing asset (NPA) and net NPA ratios also declined, standing at 2.67% and 1.35%, respectively, compared to 2.97% and 1.53% in the same period last year. Capital Small Finance Bank, established in 2016, is India’s first small finance bank and the country’s largest local area bank prior to its conversion.

The bank’s financial performance is a result of its efforts to diversify its lending portfolio and expand its deposit base. The bank’s growth is also driven by its focus on small and medium enterprises (SMEs), micro, small, and medium-sized enterprises (MSMEs), and agricultural sectors. With its strong financial performance, Capital Small Finance Bank is well-positioned to continue its growth trajectory in the future.