Slice Small Finance Bank Posts ₹7 Crore Net Profit in H1 FY26

Slice Small Finance Bank has turned profitable in the first half of fiscal year 2026, reporting a net profit of ₹7 crore, as it transitions from a lending fintech model to a deposit-taking bank. The Bengaluru-based company attributes its improvement to rising income, falling funding costs and leveraging its newly authorised retail deposit base. 

H1 FY26 Financial Highlights

As per Crisil, during H1 FY26, the bank recorded total income of ₹632 crore, compared with ₹604 crore in the entire FY25. On a pre-ESOP basis, profit stood at ₹43 crore for the half-year. The bank’s deposit base surged 61% to ₹3,900 crore, and its assets under management expanded 27% to ₹3,800 crore by September 30, 2025. 

Strategic Implications and Outlook

With this profit milestone, Slice SFB enters the profitable banking cohort backed by a technology-first unsecured lending book (76% of AUM) and plans to diversify into secured loans. 

The reduction in cost of funds facilitated by retail deposits versus wholesale borrowings is central to margin expansion. According to credit agency Crisil, operating expense rationalisation and stable credit cost trends also aided performance. 

Read More: New Banking Rules by RBI to Take Effect from November 1: What You Need to Know!

Conclusion

Slice Small Finance Bank’s H1 profit marks a significant operational inflexion point. While challenges remain in scaling secured lending and maintaining underwriting discipline, the bank appears poised for a sharper growth trajectory ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.