Slice Small Finance Bank has turned profitable in the June quarter of FY27, marking a sharp improvement from the loss reported a year earlier. The bank posted a profit after tax of Rs 50.9 crore in Q1 FY27, compared with a net loss of Rs 10.1 crore in Q1 FY26.
The result also represented a strong sequential improvement. Profit after tax rose 149% from Rs 20.4 crore in Q4 FY26. The Q1 profit was higher than the Rs 48.4 crore profit reported by slice for the entire FY26, its first full financial year in the black.
Income and profit improve sharply
slice’s total income increased 38.6% year-on-year to Rs 413.8 crore in Q1 FY27 from Rs 298.6 crore in the same quarter last year. On a sequential basis, total income grew 3.5% from Rs 399.7 crore in Q4 FY26.
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Profit before tax stood at Rs 49.1 crore in the June quarter. This compared with a loss before tax of Rs 10.1 crore in Q1 FY26 and profit before tax of Rs 20.1 crore in the previous quarter.
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The latest performance comes after slice reported its first full-year profit in FY26 following the merger with North East Small Finance Bank, or NESFB. The merged entity recorded a profit in FY26 against a net loss of Rs 216.7 crore in FY25.
Loan book and deposits nearly double
The bank’s gross loan book expanded about 55% year-on-year to Rs 5,098 crore as of June 30, 2026. It stood at Rs 3,284 crore a year earlier. The growth highlights the expansion of slice’s lending operations after it moved beyond its earlier fintech-led consumer payments, credit and buy now, pay later businesses.
Deposits also increased significantly during the period. Total deposits nearly doubled to Rs 5,765 crore from Rs 3,038 crore in Q1 FY26. The current account and savings account, or CASA, ratio stood at 43.9%.
CASA deposits and retail term deposits together accounted for 94.7% of total deposits. This mix gives the bank a large share of deposits sourced from retail and operating accounts.
Asset quality shows improvement
slice’s total assets rose 54% year-on-year to Rs 7,444 crore. Net worth increased 16.5% to Rs 896 crore. At the same time, outstanding debt declined 23.2% to Rs 507.3 crore from Rs 660.4 crore.
Asset quality also improved in the June quarter. The gross non-performing asset ratio declined to 4.36% from 6.31% in Q1 FY26. The net NPA ratio fell to 3.24% from 4.66% during the same period.
The bank reported a capital-to-risk-weighted assets ratio of 18.2%. This was above the 15% regulatory requirement for small finance banks.
Rajan Bajaj-led slice enters its next phase
slice was founded by Rajan Bajaj in 2016 as a fintech focused on consumer payments, credit and BNPL services. The company became a unicorn in 2021 after raising a $220 Mn Series B round. Before its banking transition, slice raised about $380 Mn from investors including Tiger Global, Insight Partners, Sunley House Capital, Moore Strategic Ventures, Anfa and Gunosy Capital.
The merger with NESFB was completed in October 2024, creating an RBI-licensed small finance bank with operations across digital banking, lending and