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Capital Small Finance Bank (CSFB) has closed the fiscal year with positive signs, showcasing robust growth and a commitment to maintaining strong financial health. In their recently released business highlights for the quarter and year ended March 31, 2024, CSFB revealed promising figures across key financial metrics.
A crucial indicator of a bank’s performance is its ability to extend credit. CSFB’s gross advances, which represent the total amount of loans and credit facilities disbursed, witnessed an encouraging growth of 8% on a quarter-on-quarter basis. This translates to a gross advance figure of ₹6,159.83 crore as of March 31, 2024, compared to ₹5,717.96 crore at the end of the previous fiscal year. Notably, over 99% of this portfolio comprises secured loans, potentially reducing the risk of defaults.
Another positive indicator is the significant increase in loan disbursements. CSFB reported a remarkable 76% growth in disbursements during the quarter ending March 31, 2024, reaching a figure of ₹675.81 crore. This surge suggests a strong demand for credit from their target customer segments and highlights the bank’s effectiveness in catering to those needs.
CSFB demonstrates a keen focus on managing potential risks, reflected in their Gross NPA (Non-Performing Assets) ratio of 2.76% for Q4 FY2024. This low ratio indicates a healthy loan portfolio with a minimal percentage of defaulted loans. This focus on asset quality ensures the bank’s financial stability and protects its profitability.
On the deposit side, CSFB witnessed a 14% year-on-year growth in total deposits, reaching ₹7,477.74 crore as of March 31, 2024. This rise in deposits signifies growing customer confidence in the bank and provides them with a strong base for funding their lending activities. Notably, CSFB boasts a high CASA (Current Account Savings Account) ratio of 38.28%. CASA deposits are considered a more stable source of funds as they are less likely to be withdrawn compared to fixed deposits.
CSFB prioritises maintaining adequate liquidity to meet its financial obligations. They closed the quarter with a healthy average Liquidity Coverage Ratio (LCR) of 264.05%. This ratio signifies that the bank has sufficient high-quality liquid assets to withstand unexpected cash outflows, ensuring its financial stability and operational resilience.
Overall, Capital Small Finance Bank’s Q4 FY24 performance reflects a period of growth and consolidation. The bank displayed a successful strategy in expanding its loan portfolio, managing credit risk, and attracting deposits. As CSFB enters the new fiscal year, these positive results position them well for continued success in the Indian small finance banking sector.
Capital Small Finance Bank Ltd offers a range of banking products on the asset and liability side. Asset products primarily include agriculture loans, MSMEs, trading loans and mortgages. On April 04, 2024, the shares of the company opened at ₹369.85 and reached the day high of ₹373.15 at 03:00 PM.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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