Are Capital Small latest results good or bad?

Capital Small Finance Bank's financial results for the quarter ending June 2025 present a mixed picture. The bank reported a net interest income of Rs 109.79 crore, which is the highest in the last five quarters, indicating a positive trend in its core business operations. Additionally, the interest earned reached Rs 247.08 crore, reflecting a favorable near-term sales trend with a quarter-on-quarter growth of 6.75%.
However, the bank is facing challenges with rising levels of non-performing assets (NPAs). The gross NPA ratio increased to 2.74%, the highest in five quarters, while the net NPA rose to 1.39%. These figures highlight ongoing concerns regarding loan performance and the quality of the bank's asset portfolio. Furthermore, non-operating income constituted a significant portion of the profit before tax at 53.82%, suggesting a reliance on non-core activities, which may not be sustainable in the long term.

Overall, while Capital Small Finance Bank has shown growth in its core income, the rising NPAs present a challenge that the bank will need to address to ensure long-term stability and performance. Additionally, the company saw an adjustment in its evaluation during this reporting period.