Capital Small Finance Bank Annual Reports, Balance Sheet & Financials

Capital Small Finance Bank Limited Balance Sheet (Rs in Thousands)

 Capital Small Finance Bank Limited Profit & Loss Statement (Rs in Thousands)

 Capital Small Finance Bank Limited Consolidated Cash Flow Statement (Rs in Thousands)

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

Cash Flow from Operating Activities

Net Profit before Taxes increased from ₹12,41,564 (2023) to ₹14,82,137 (2024), reflecting a positive operating performance.

Adjustments:

Depreciation Charge/Amortisation decreased from ₹2,06,670 in 2023 to ₹1,69,029 in 2024.

Loan Loss Provision also dropped significantly from ₹2,45,484 to ₹66,852.

Employee Stock Options Expense increased from ₹26,709 to ₹41,854, reflecting higher expenses related to employee stock compensation.

Working Capital Movements:

There were substantial changes in term deposits, investments, advances, and deposits, showing significant shifts in asset and liability management.

Overall, cash flow from operating activities before taxes was ₹15,39,810 in 2024, up from ₹10,92,400 in 2023.

After tax payments, net cash from operating activities was ₹11,29,777 in 2024, up from ₹7,48,832 in 2023, indicating a healthy increase.

Cash Flow from Investing Activities

Purchase of Fixed Assets remained steady, with an outflow of ₹1,84,539 in 2024 compared to ₹1,97,644 in 2023.

Proceeds from Sale of Fixed Assets were minor but increased slightly from ₹1,013 in 2023 to ₹5,372 in 2024.

Investments in HTM securities resulted in significant outflows, with ₹14,45,150 in 2024 and ₹18,23,272 in 2023.

Overall, net cash flow from investing activities was negative at ₹-16,24,317 in 2024 compared to ₹-20,19,903 in 2023, due to continued investments.

Cash Flow from Financing Activities

Proceeds from Share Capital including Share Premium saw a substantial increase, rising from ₹19,855 in 2023 to ₹50,05,337 in 2024.

Share issue expenses incurred in 2024 amounted to ₹2,45,764.

Net Proceeds from Bonds: A slight decrease from ₹2,61,300 in 2023 to ₹2,28,600 in 2024.

There was a net decrease in borrowings by ₹27,19,933 in 2024, compared to an increase of ₹19,68,233 in 2023.

Dividend Payment increased modestly, from ₹34,234 in 2023 to ₹42,421 in 2024.

Net cash flow from financing activities was a positive ₹22,25,819 in 2024, similar to the ₹22,15,154 in 2023.

Net Change in Cash and Cash Equivalents

The overall net increase in cash and cash equivalents was ₹17,31,279 in 2024, up from ₹9,44,083 in 2023.

Cash & Cash Equivalents at the beginning of the year were ₹49,19,381 in 2024.

Cash & Cash Equivalents at the end of the year reached ₹66,50,660 in 2024, reflecting a significant increase in liquid cash resources.

Financial Ratios of Capital Small Finance Bank Limited

Here is a summary of the financial and operational metrics for Capital Small Finance Bank Limited for the year 2024 and 2023:

Net Interest Margin (NIM)

2024: 3.94

2023: 4.19

Net Interest Margin measures the difference between interest income generated and interest expenses as a percentage of interest-earning assets. It indicates how efficiently the company is generating income from its assets. A decrease from 4.19% in 2023 to 3.94% in 2024 may suggest slightly lower profitability from lending activities, potentially due to increased funding costs or competitive pressures on interest rates.

Gross Non-Performing Assets (Gross NPAs)

2024: 2.76

2023: 2.77

Gross NPAs represent the percentage of total loans that are classified as non-performing, meaning borrowers are not making required payments. The slight improvement from 2.77% in 2023 to 2.76% in 2024 indicates a marginally better credit quality, with a small reduction in problematic loans. Lower NPAs reflect positively on the bank’s risk management and loan recovery efforts.

Net Non-Performing Assets (Net NPAs)

2024: 1.4

2023: 1.36

Net NPAs are calculated after deducting provisions made for NPAs, showing the actual exposure of non-performing loans on the bank's balance sheet. The slight increase from 1.36% to 1.4% suggests a minor rise in net defaulted loans, potentially due to challenges in recovery or an increase in loan delinquencies. Keeping Net NPAs low is crucial for maintaining profitability and financial stability.

Return on Assets (ROA)

2024: 1.27

2023: 1.22

ROA measures the bank’s efficiency in generating profit from its assets. The increase from 1.22% to 1.27% in 2024 indicates improved asset utilization, where each rupee of assets is yielding higher returns. This is a positive trend, reflecting better profitability relative to the bank’s asset base.

Return on Equity (ROE)

2024: 14.64

2023: 16.62

ROE represents the profit generated from shareholders' equity. The decrease from 16.62% to 14.64% suggests that the bank's ability to generate profits from its equity capital has declined, possibly due to higher capital reserves or lower profit margins. While still a healthy ROE, the drop indicates that shareholder returns have slightly decreased year-over-year.

Return on Average Advances

2024: 1.98

2023: 1.89

This ratio measures the return generated from average loan advances. An increase from 1.89% to 1.98% indicates better performance in generating income from lending activities, reflecting improved interest income relative to loans given out. This suggests effective lending strategies and healthy loan interest margins.

Cost of Deposits

2024: 5.61

2023: 4.9

The cost of deposits reflects the average interest rate the bank pays to depositors. An increase from 4.9% to 5.61% indicates a rise in deposit costs, possibly due to competitive pressure for attracting deposits or an overall increase in market interest rates. Higher deposit costs can impact profitability if lending rates do not increase correspondingly.

Yield on Advances

2024: 11.1

2023: 10.76

Yield on advances represents the average return on loans and advances. An increase from 10.76% to 11.1% suggests the bank is generating higher income from its lending activities, either due to an increase in interest rates or a shift to higher-yielding loan products. This is a positive indicator for the bank’s profitability from core lending activities.

Capital to Risk-Weighted Assets Ratio (CRAR)

2024: 27.39

2023: 18.87

CRAR measures a bank’s capital adequacy and its ability to absorb potential losses, with a higher ratio indicating greater financial stability. The substantial increase from 18.87% to 27.39% in 2024 suggests a stronger capital base, possibly due to higher retained earnings or additional capital infusion. A higher CRAR enhances the bank's capacity to withstand financial risks, which is particularly important in meeting regulatory requirements and maintaining investor confidence.