Capital Small Finance Bank targets ₹16,000 crore loan book by FY29

Capital Small Finance Bank has revealed plans to expand its loan portfolio to ₹16,000 crore by FY29, doubling from the current ₹7,907 crore through strategic growth in MSME, mortgage, and agricultural lending segments.

The Jalandhar-based bank reported robust performance in its MSME division with 33% year-on-year growth as of September 30. Mortgage loans against properties saw 22% annual growth. Executive Director Munish Jain confirmed these core segments will maintain their 75-80% share of the total portfolio while sustaining 20% annual loan expansion.

Deposits increased by 20% year-on-year to ₹9,317 crore, achieving a CASA ratio of 33.9%. Branch expansion plans target 1.5x growth from the current 199 locations, focusing on Uttar Pradesh and Gujarat markets. The bank aims for over 30% of branches outside Punjab by FY29, up from 17.5% currently.

Q2 FY26 results showed a net profit of ₹35 crore, marking 5% annual growth. Net interest margins stabilized at 4.04%, with targets set at 4.1% for H2 FY26 and above 4.2% for FY27. Asset quality improved with gross NPAs declining to 2.70% from 2.75% sequentially.

The institution is exploring entry into gold lending following revised priority sector requirements increasing to 60% of total loans.

Capital Small Finance Bank shares traded at ₹284 on the NSE at 1.20 pm, down 0.99% from previous close.

Published on October 30, 2025