Slice posts Q1 profit of Rs 51 crore as banking pivot gathers pace

Slice Small Finance Bank reported a net profit of Rs 50.9 crore for the June quarter, exceeding its profit of Rs 48.4 crore over the whole of the previous financial year (FY26), as it continued to build on a post-merger turnaround.

The public but unlisted fintech-turned-bank, which now files quarterly financials, had reported a net loss of Rs 10.1 crore in the year-ago quarter. Total income rose 38.6% year on year to Rs 413.8 crore from Rs 298.6 crore, and was up 3.5% sequentially from Rs 399.7 crore in Q4 FY26.

The numbers come as Slice is in talks to raise $50-100 million in fresh capital at a valuation likely below $1 billion, ET had reported in April. The round, if completed, would be lower than its last-known valuation of around $1.3 billion, as the company pitches itself as a digital bank and looks to expand its lending, deposit and UPI-led banking business.


A key metric in the quarter was Slice’s current account-savings account (CASA) ratio, which stood at 43.9%. For banks, CASA is important because current and savings account deposits are typically cheaper than term deposits, helping lower the cost of funds and improve lending spreads.

Retail term deposits and CASA together accounted for 94.7% of Slice’s total deposits, showing that the bank is building a largely retail deposit base rather than relying heavily on wholesale borrowings.

Slice’s gross loan book grew 55% year on year to Rs 5,098 crore as of June 30, from Rs 3,284 crore a year earlier. Deposits nearly doubled to Rs 5,765 crore from Rs 3,038 crore, while total assets surged 54% to Rs 7,444 crore. Net worth stood at Rs 896 crore, and the capital-to-risk-weighted assets ratio was 18.2%, above regulatory requirements.

Profit before tax stood at Rs 49.1 crore, compared with a Rs 10.1 crore loss a year earlier and Rs 20.1 crore in the March quarter. Basic earnings per share improved to Rs 0.06 from a loss of Rs 0.01 per share a year earlier. Outstanding debt fell 23.2% year on year to Rs 507.3 crore.

Asset quality also improved, though it remains a number to watch as the bank expands credit. Gross non-performing assets fell to 4.36% as of June 30 from 6.31% a year earlier, while net NPAs improved to 3.24% from 4.66%.

Founded by Rajan Bajaj, Slice began as a credit-focused fintech before regulatory changes around prepaid instruments disrupted its earlier model. The fintech completed its merger with North East Small Finance Bank in October 2024 after receiving shareholder and regulatory approvals, turning into a full-stack bank with savings accounts, deposits, UPI, credit products and merchant banking offerings.