Earning Call Transcript - October 30, 2026

CSFB No. 2026-27/369 November 05, 2026 BSE Limited National Stock Exchange of India Limited Listing Compliance The Listing Department, Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street Bandra Kurla Complex, Mumbai 400 001 Mumbai - 400 051 Maharashtra Maharashtra Scrip Code: 544120 Symbol: CAPITALSFB Dear Sir/Madam, Sub: Transcript of Earning Conference Call for the Un - Audited Financial Results of Capital Small Finance Bank Limited for period ended September 30, 2026. Ref: Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 We submit herewith the transcript of the Earnings conference call held on Friday, October 30, 2026 for the un - audited Financial Results of Capital Small Finance Bank Limited for the period ended September 30, 2026. In compliance of Regulation 46 of the Listing Regulations, the transcript is also made available on the Bank’s website at https://www.capital.bank.in/investors/financial-results This is for your information and records. Thanking you, Yours faithfully For Capital Small Finance Bank Limited Amit Sharma Company Secretary & Compliance Officer Membership No. F10888 “Capital Small Finance Bank Limited Q2 & H1 FY27 Earnings Conference Call” October 30, 2026 “E&OE - The transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on 30th October 2026 will prevail” MANAGEMENT: MR. SARVJIT SAMRA– MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER – CAPITAL SMALL FINANCE BANK LIMITED MR. MUNISH JAIN – EXECUTIVE DIRECTOR – CAPITAL SMALL FINANCE BANK LIMITED MR. ASEEM MAHAJAN – CHIEF FINANCIAL OFFICER – CAPITAL SMALL FINANCE BANK LIMITED MR. RAGHAV AGGARWAL – CHIEF CREDIT OFFICER, BRANCH BANKING – CAPITAL SMALL FINANCE BANK LIMITED MR. SAHIL VIJAY – HEAD OF TREASURY AND INVESTOR RELATIONS – CAPITAL SMALL FINANCE BANK LIMITED MS. BHARTI BABUTTA – INVESTOR RELATIONS – CAPITAL SMALL FINANCE BANK LIMITED SGA – INVESTOR RELATIONS ADVISOR – CAPITAL SMALL FINANCE BANK LIMITED Page 1 of 21 Capital Small Finance Bank Limited October 30, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Capital Small Finance Bank Limited Q2 and H1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sarvjit Singh Samra, MD and CEO, Capital Small Finance Bank. Thank you, and over to you, Mr. Samra. Sarvjit Singh Samra: Thank you. Good morning, everyone, and thank you for joining us on Capital Small Finance Bank Earnings Call for the Second Quarter and First Half of Financial Year '27. I hope you and your families are keeping well. Our financial results and the investor presentation are already on the stock exchanges and on our website. Let me quickly introduce the team with me on the call today. I have with me Mr. Munish Jain, our Executive Director; Aseem Mahajan, our Chief Financial Officer; Raghav Aggarwal, Chief Credit Officer for Branch Banking; Sahil Vijay, our Chief Treasury Officer and Investor Relations Lead; Bharti Babutta from our Investor Relations team and our IR Advisors, SGA. I will begin with an overview of the operating environment and macroeconomic developments during the Q2 & H1FY27, followed by a detailed discussion on bank's performance and outlook. Let me begin, as usually, I do with a few words on the environment we are operating in, because the sector is entering a phase wherein the quality of growth, the strength of your deposit franchise and how well you navigate a shifting rate cycle really start to matter. The first half of the year has been a healthy one for the system. Credit growth stayed strong on the back of Retail and MSME demand and Deposit mobilization has picked up well. As end of the September, banking industry credit grew at around 19.4% year-on-year against deposit growth of about 17.8%. The other big development was, of course, monetary policy. In its October review, the Reserve Bank raised the repo rate by 25 basis points to 5.50% and moved its stance to calibrated tightening. This was on the back of some emerging inflationary pressures, higher energy and food prices alongside an economy that is still growing well. The signal from the Central Bank is fairly clear, for now rate cuts are off the table and the path ahead will depend upon how inflation and growth play out. For us, as bankers, this shifts the focus. Until recently, the question was how quickly rates would come down. Now it's about managing a rate environment that may stay higher for longer. The cost of deposits, how our liability book reprices and our ability to protect lending spreads will be the things that drive profitability from here. And through all of it, disciplined underwriting, comfortable liquidity and picking the right loans will be what lets us keep growing without letting asset quality slip. Page 2 of 21 Capital Small Finance Bank Limited October 30, 2026 These are not new disciplines for us. They are how we have always run the bank. And in an environment like this, granular Retail deposit and real customer relations matter more than ever. For a bank like us rooted in semi-urban and rural markets, the ability to raise deposits through a branch network we have built over decades and to go deeper with customers, we already know is genuine and durable advantage. When I look at where we stand, I'm confident our model is well suited to this environment. Our deep presence in core markets and almost entirely secured loan book and a relationship-led way of banking give us solid base to keep growing while staying measured on risk. Our priorities are quite simple, remain the same, grow the franchise, strengthen the deposit base and protect the quality of the balance sheet. With that backdrop, let me take you through how the bank performed in the Q2 & H1FY27. I will touch on the headline numbers and then hand over to Munish for further details. Our gross advances stood at INR9,755 crores as of September 30, '26, up 23.4% year-on-year, and 7.5% over the previous quarter. Disbursements for the quarter were INR1,095 crores, up 36% year- on-year. On the liability side, total deposits grew to INR10,831 crores, up 16.2% year-on-year and 2.2% over the previous quarter. CASA stood that INR3,734 crores or 34.5% of total deposits, compared with 33.9% a year ago. Gross NPA declined to 2.3% at the end of September '26, compared with 2.47% in June '26 and 2.70% a year ago. Our average credit-to-deposit ratio stood at 85.4% during the quarter compared with 81.5% in the corresponding period last year. Looking ahead, our priorities are clear, keep the momentum going in our core lending segments, make the deposit franchise deeper and more stable, improve productivity and stay firmly focused on asset quality. In a shifting rate environment, we believe disciplined, consistent execution will count far more than simply chasing scale. On that note, let me hand over to Munish, who will take you through our financial and operating performance in more detail. Over to you, Munish. Munish Jain: Thank you, Mr. Samra, and good morning, and warm welcome to you all on the call. Let me walk you through the key business and financial highlights for the quarter and the half year ending September 30, 2026, and then spend a little time on the progress we are making on our strategic priorities and Vision 2029 road map. Business performance and advance profile. Starting with advances. As of September 30, our gross advances stood at INR9,755 crores. That is a growth of 23% year-on-year and 7.5% over the previous quarter, an acceleration from where we were in Q1, and a reflection of steady execution, healthy demand across [Showing first 8,000 characters — download PDF for full document]