Transcript of Earning Call held on July 24, 2026

CSFB No. 2026-27/226 July 30, 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 June 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, July 24, 2026 for the un - audited Financial Results of Capital Small Finance Bank Limited for the period ended June 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 Q1 FY27 Earnings Conference Call” July 24, 2026 “E&OE - The transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on 24th July 2026 will prevail” MANAGEMENT: MR. SARVJIT SAMRA – MANAGING DIRECTOR AND 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 – CHIEF TREASURY OFFICER AND INVESTOR RELATIONS LEAD – CAPITAL SMALL FINANCE BANK LIMITED MR. BHARTI BABUTTA – INVESTOR RELATIONS – CAPITAL SMALL FINANCE BANK LIMITED SGA, INVESTOR RELATIONS ADVISORS – CAPITAL SMALL FINANCE BANK LIMITED Page 1 of 21 Capital Small Finance Bank Limited July 24, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Capital Small Finance Bank Limited Q1 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 telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sarvjit Samra from Capital Small Finance Bank Limited for opening remarks. Thank you, and over to you, sir. Sarvjit Samra: Thank you, Avirat. Good morning, everyone, and thank you for joining Capital Small Finance Bank Limited Q1FY27 Earnings Call. Our financial results and the investor presentation have been filed with the stock exchanges and are available in the public domain. We trust you have had an opportunity to review the same. Joining me today are Mr. Munish Jain, Executive Director; Aseem Mahajan, Chief Financial Officer; Raghav Aggarwal, Chief Credit Officer-Branch Banking; Sahil Vijay, Chief Treasury Officer and Investor Relations Lead; Bharti Babutta from our Investor Relations team and along with our IR advisers, SGA. I will begin by sharing our perspective on the operating and macroeconomic backdrop during the Q1FY27, after which we will discuss the bank's performance and outlook in greater detail. The quarter gone by witnessed a gradually improving operating environment for the banking sector. While global uncertainties and the geopolitical developments continue to influence commodity pricing, inflation expectations and financial markets, the Indian economy continues to demonstrate remarkable resilience and remains one of the fastest-growing major economies globally. Growth continues to be supported by healthy domestic consumption, resilient rural demand, steady government capital expenditure and improving investment activity. Against a backdrop of moderating global growth, India's structural growth drivers continue to position the country favourable for sustained economic expansion. From a banking sector perspective, system credit growth remains healthy across retail, MSME and agriculture segments, while the deposit environment, though competitive, has started showing signs of normalization. The repricing of high-cost deposits across the industry is gradually easing funding cost pressures and creating a more supportive environment for margin expansion. At the same time, the government's decision to maintain interest rates on small savings schemes has helped preserve the competitive positioning of bank deposits and contributing to a great stability within the liability landscape. Page 2 of 21 Capital Small Finance Bank Limited July 24, 2026 Against this backdrop, Capital Small Finance Bank remains well positioned to capitalize on the opportunities ahead. Our franchise continues to be anchored on 3 key strengths, a skewed and granular loan portfolio, a stable and retail-focused deposit franchise and deep relations across the semi-urban and rural markets that we serve. As we have outlined earlier, FY27 remains a year of profitable growth, operating leverage and improving returns. The benefits of deposit repricing have started flowing through, while our strong capital adequacy and liquidity position provide us with ample headroom to support growth across all our core lending segments. Our strategic priorities remain unchanged. We continue to focus on growing our secured loan portfolio led by MSME, mortgage and agriculture segments, deepening our presence across contiguous geographies, strengthening our retail liability franchise. Having completed a decade as India's first small finance bank and over 26 years as banking institution, we believe the opportunities ahead remain significantly higher than those behind us. We remain committed to create long-term value for all stakeholders through responsible banking, customer-centric innovation and sustainable financial inclusion. With that, let me now take you through bank's performance for the Q1FY27. Gross advances increased to INR 9,074 crores, registering 22% year-on-year growth, led by traction across MSME and other business loans. Total deposits for the quarter stood at INR 10,596 crores, growing 16% year-on-year with CASA improving to 36.7% earlier from 34.7% in March 2026. Disbursements remained healthy at INR 1,009 crores during the quarter. Asset quality remained stable with GNPA at 2.47% and NNPA at 1.14%. Net interest margin stood at 4.21%, while profit after tax for the quarter at INR 41 crores. Going forward, we remain focused on deepening customer engagement, improving productivity across our franchise, expanding selectively in semi-urban and rural markets and preserving the strong asset quality and operating efficiency. With that, I would now like to hand it over to Mr. Munish Jain, who will take you through the detailed financial and operational performance. Thank you. Munish Jain: Thank you, Mr. Samra, and a warm welcome to everyone on the call. I will now walk you through the key business and financial highlights for the quarter ended June 2026. As of June 30, 2026, our gross advances stood at INR 9,074 crores, reflecting sustained momentum in credit growth. On a year-on-year basis, advances grew by 22%, while sequential growth stood at 4.5%, underscoring both consistent execution and healthy demand across our core lending segments. Disbursement momentum remains strong. Fresh disbursement during the quarter stood at INR 1,009 crores, representing 17% year-on-year growth, reflecting sustained demand across key segments and the effectiveness of our distribution and underwriting capabilities. Our loan book remained firmly anchored in secured lending. Page 3 of 21 Capital Small Finance Bank Limited July 24, 2026 As of quarter end, 97.4% of [Showing first 8,000 characters — download PDF for full document]