Capital Small Finance Bank reported a 6.5 per cent increase in second quarter net profit at ₹24.29 crore, supported by robust growth in other income and decline in provisions and contingencies even as net interest income witnessed a relatively muted growth.

The Jalandhar-headquartered SFB had reported a net profit of ₹22.81 crore in the year ago period.

Net interest income (difference between interest earned and interest expended) was up about 4 per cent y-o-y at ₹84.44 crore (₹81.50 crore in the year-ago quarter).

Other income, including fee-based income, treasury income and recovery in written-off accounts, rose 36 per cent y-o-y to ₹15.86 crore (₹11.65 crore).

Gross non-performing assets (GNPAs) position improved to 2.73 per cent of gross advances as at September-end 2023 against 2.81 per cent as at June-end 2023. Net NPAs position improved a tad to 1.36 per cent of net advances against 1.37 per cent.

Provisions and contingencies (other than tax) saw a sharp 78 per cent decline to ₹1.75 crore (₹8.07 crore).

Advances increased by 13 per cent y-o-y to ₹5,784 crore as at September-end 2023 against ₹5,127 crore as at September-end 2022. The Bank’s loan products primarily include agriculture loans, MSME and trading loans (working capital, machinery loans etc.) and mortgages (housing loans and loans against property) 

Deposits too rose by 13 per cent to ₹7,000 crore against ₹5,127 crore.