Slice Small Finance Bank reported a net profit of Rs 50.9 crore for the June quarter, exceeding its entire annual profit from the previous financial year. The bank is currently working to raise $50-100 million in fresh capital while adjusting to a lower valuation.
Slice Small Finance Bank has reported a significant financial turnaround, posting a net profit of Rs 50.9 crore for the quarter ending June 30, 2026. This performance is notable as it surpasses the bank’s total net profit of Rs 48.4 crore for the entire 2025-26 financial year. The improvement marks a shift from the net loss of Rs 10.1 crore recorded in the same period last year.
The bank’s total income for the quarter grew by 38.6% year-on-year to Rs 413.8 crore. This growth in income reflects the bank's operational expansion as it executes its strategy to transition into a fully functional digital bank offering services like lending, deposits, and UPI payments.
A central focus for the bank has been building a stable deposit base. The Current Account-Savings Account (CASA) ratio, which measures the proportion of deposits in low-cost accounts, stood at 43.9%. When combined with retail term deposits, these make up 94.7% of the bank's total deposits, reflecting a shift away from high-cost wholesale borrowing. The bank’s gross loan book grew by 55% year-on-year to Rs 5,098 crore, while total deposits nearly doubled to Rs 5,765 crore.
Despite these operational gains, the bank is navigating a challenging funding environment. It is currently in talks to raise between $50 million and $100 million in new capital. Market reports indicate that this funding round may take place at a valuation lower than its previous peak of $1.3 billion. For investors and stakeholders, this suggests a valuation correction that is common in the current private capital environment for many fintech-focused firms.
Asset quality has shown signs of improvement, with gross non-performing assets (NPAs)—loans that are in default—falling to 4.36% from 6.31% a year ago. Net NPAs also improved to 3.24% from 4.66%. The bank’s capital-to-risk-weighted assets ratio (CRAR) of 18.2% remains well above regulatory requirements, providing a buffer for future lending activities.
As the bank moves forward, its ability to maintain profit margins while scaling its digital lending operations will be a key monitorable. The fintech-to-bank model faces intense competition from established payment platforms and larger banks, making effective execution and customer retention critical to long-term stability. The bank’s next major updates will likely focus on the conclusion of its current funding round and the sustained quality of its loan book.