After merging with NESFB, slice SFB posts INR 6.5 Cr profit in H1 FY26, backed by improved capitalisation, soaring AUM, and digital lending expansion.
Profitability Achieved Post-Merger
Shortly after merging with North East Small Finance Bank (NESFB) in October 2024, slice Small Finance Bank (SSFB) reported a net profit of INR 6.5 Cr in the first half of FY26. The profit marks a significant milestone, signaling the merger’s early success in creating operational and financial synergies.
- The merger unified the digital infrastructure of slice with the branch network of NESFB, forming a more agile and scalable banking entity.
- According to Crisil Ratings, this profitability is attributed to improved loan book growth and regional expansion.
Strong Capital Infusion Boosts Net Worth
SSFB’s financial strength saw a major leap following the merger. The bank’s net worth jumped from INR 61 Cr as of March 31, 2024, to INR 849 Cr by March 31, 2025, and further increased to INR 891 Cr by September 30, 2025.
- Crisil revised its outlook to ‘Positive’ from ‘Stable’, citing robust capitalisation and sustainable growth prospects.
- The bank is expected to benefit from product diversification and technological upgrades over the medium term.
AUM Sees Exponential Growth
One of the most notable outcomes post-merger has been the dramatic rise in Assets Under Management (AUM).
- SSFB’s AUM soared 254% YoY to INR 3,759 Cr in H1 FY26, up from INR 2,954 Cr in FY25.
- The surge reflects increased customer acquisition, credit expansion, and better market penetration across segments.
Digital Lending Expansion via slice Business App
As part of its digital strategy, slice has ventured into MSME lending through the ‘slice business: loans & bank’ app.
- This platform offers instant business loans up to INR 5 Lakh to micro-entrepreneurs such as retailers, manufacturers, and service providers.
- The initiative strengthens slice’s vision of being a tech-driven small finance bank, targeting underserved sectors.
Despite Losses in FY25, Revenue Grows Strongly
While H1 FY26 was profitable, the full FY25 still recorded a net loss of INR 216.7 Cr, up from INR 152.7 Cr in FY24.
- However, the total income surged 2.4X YoY to INR 603.7 Cr, indicating strong revenue traction.
- Interest income doubled to INR 409.2 Cr, while other income contributed INR 194.5 Cr, showcasing revenue diversification.
Strategic Integration Powers Long-Term Vision
The merger was not just a financial move but a strategic alignment of digital and physical banking models.
- In its FY25 annual report, SSFB stated that the merger helps integrate UPI, lending, and deposit platforms into a unified system.
- With enhanced operational infrastructure and a pan-India footprint, the bank is well-positioned for sustainable growth.
slice Small Finance Bank turned profitable in H1 FY26 with INR 6.5 Cr in net profit, following its merger with NESFB. The bank saw a strong rise in net worth and AUM, expanded into MSME lending, and posted over 2.4X revenue growth in FY25, despite an annual loss of INR 216.7 Cr.
