slice Reports First Full-Year Profit, Posts ₹48.4 Cr PAT In FY26

Fintech major slice reported its first full profitable fiscal year after converting into a small finance bank (SFB) in October 2024. The SBF posted a net profit of ₹48.4 Cr in FY26 as against a net loss of ₹216.7 Cr in FY25.

Total income grew 132% to ₹1,402.7 Cr during the year from ₹603.8 Cr in FY25.

“This is a year we will look back on as a real turning point. The work now is to build on this, expand access to credit for customers who have historically been underserved and keep building the bank the right way. We are still very early but on the right track,” a slice spokesperson said.

The SFB posted a net profit of ₹20.4 Cr in Q4 FY26 as against a net loss of ₹89.9 in the year-ago quarter. Total income rose 8% to ₹399.7 Cr from ₹370 Cr in Q4 FY25. Meanwhile, expenses grew 18.3% to ₹345.2 Cr during the quarter from ₹291.7 Cr in the year-ago period.

slice’s net worth stood at ₹875.3 Cr as of March 31, 2026, while its capital to risk-weighted assets ratio (CRAR) stood at 19.1%. The bank’s CASA ratio stood at 39.8%. As per slice, retail term deposits and CASA together accounted for 94.2% of total deposits at the end of the FY26.

The SFB reported a gross non-performing asset (NPA) ratio of 4.81% during the fiscal year, improved from 6.25% in the year-ago period. Meanwhile, its net NPA ratio stood at 3.61% during the year compared to 4.67% in FY25.

Founded in 2016, slice began the process of acquiring North East SFB in 2024 following the Reserve Bank of India’s clampdown on co-branded credit cards and BNPL offerings, which were then its core businesses.

While there were doubts about the loss-making fintech’s ability to revive its fortunes through the acquisition, slice has since managed to restore the struggling SFB’s loan book growth by expanding its regional and segmental presence, ratings agency Crisil said in a report published in December last year.

Where Did slice Earn Revenue From?

At ₹890.5 Cr, slice earned a bulk of its income in FY26 through interest earned from loan advances. This was up 149% YoY. Meanwhile, income from investments jumped to ₹77.5 Cr from ₹44.7 Cr in the previous year.

It further earned ₹11.2 Cr from interest on balances deposited with the RBI and other banks.

The SFB generated a revenue of ₹422.8 Cr from other sources, including processing fees, service charges on liability products, commission from selling third-party products, and recovery from written-off accounts. This income jumped 117.3% YoY from ₹194.5 Cr in the previous year.

Where Did slice Spend?

Interest Expended: This was slice’s largest expense head, reflecting the interest expense incurred on depositor payouts. The SFB spent ₹360.8 Cr on this during the fiscal, up from ₹199.2 Cr in FY25.

Employee Benefit Expenses: This was slice’s primary operating expense, rising 73.1% YoY to ₹459 Cr. Other operating expenses stood at ₹405.8 Cr, up 86.7% YoY.

Provision & Contingencies: slice’s expenses under this head stood at ₹123.5 Cr during the fiscal, down from ₹177.8 Cr in FY25. Deposit-taking banks treat provisions and contingencies as expenses because they account for funds set aside against potential future liabilities.

The post slice Reports First Full-Year Profit, Posts ₹48.4 Cr PAT In FY26 appeared first on Inc42 Media.