Capital Small Finance Bank Reports 11?posit Growth, Stable Asset Quality in Q2 Update

Capital Small Finance Bank Reports 11% Deposit Growth, Stable Asset Quality in Q2 Update

Capital Small Finance Bank Ltd., which has struggled as one of the worst-performing IPOs this year, released its business update for the July-September quarter. The bank reported a growth in deposits and advances, while maintaining stable asset quality.

As of the end of September 2024, the bank's total deposits stood at ₹7,780 crore, reflecting an 11% growth compared to the same period last year. However, on a quarter-on-quarter basis, deposit growth remained flat.

Gross advances for the quarter were recorded at ₹6,718 crore, up from ₹5,866 crore in the previous year, representing a 15% year-on-year growth and a 5% rise from the June quarter. The bank highlighted that 99.8% of its advances portfolio is secured.

In terms of asset quality, the gross non-performing assets (NPA) ratio stood at 2.6% for the September quarter, showing slight improvement from 2.7% recorded both in the previous quarter and the same period last year.

The bank's credit-deposit ratio averaged 82.4% for the quarter, rising from 79.6% in June and 79.1% in September 2023. Liquidity coverage ratio (LCR) also improved to 238.1% from 215.5% in the previous quarter, though it was slightly lower than the 246.1% recorded in the same quarter last year.

Despite these positive developments, Capital Small Finance Bank's stock performance continues to struggle. Shares are trading 0.2% lower at ₹295.3, reflecting a 33% decline so far this year. The stock remains nearly 37% below its IPO price of ₹468.