Slice SFB Turns Profitable In H1 FY26, Posts INR 6.5 Cr Profit

Shortly after merging with North East Small Finance Bank (NESFB), slice Small Finance Bank (SSFB) turned profitable in the first half of FY26. The company posted a net profit of INR 6.5 Cr for H1 FY26 as per a Crisil Ratings report.

In its report, the ratings agency said that the SFB has seen an improvement in its bottom line on the back of restored growth in loan book with expansion of regional and segmental presence.

“By virtue of the amalgamation, the bank’s capitalisation has strengthened substantially over the past few quarters. The net worth rose from INR 61 Cr (reported) as on March 31, 2024, to INR 849 Cr as on March 31, 2025, and further to INR 891 Cr as on September 30, 2025,” Crisil observed in its ratings note released on November 7.

Revising its outlook for SSFB to ‘Positive’ from ‘Stable’, Crisil said that it expects the bank to see traction to continue over the medium term. Besides, it highlighted that the new banking entity would continue to see an improvement through expanded market presence, supported by enhanced technological capabilities and product and geographical diversification in assets.

It won’t be unfair to highlight that both the entities have seen substantial improvements in their respective businesses since the merger. For instance, the bank’s assets under management (AUM) grew by 254% YoY to INR 3,759 Cr for H1 FY26 and to INR 2,954 Cr for FY25.

On the digital front, slice forayed into MSME lending with the launch of a new app slice business: loans & bank. Under this, slice is giving instance business loans of up to INR 5 Lakh at an interest rate to business owners like retailers and shopkeepers, service providers manufacturers, among others.

Important to mention that fintech unicorn startup slice merged with NESFB in October 2024, unifying the operations, assets, and brand identities of both entities into a single, integrated banking institution.

Pursuant to the approval of shareholders and relevant regulatory authorities, the name of the Bank was changed from North East Small Finance Bank Limited to slice Small Finance Bank limited with effect from February 11, 2025.

In its annual report for FY25, slice said that the merger aligned with its digital architecture comprising UPI products, lending platforms, etc. with the bank’s physical branch infrastructure. “The combined entity will seamlessly integrate digital deposit and lending capabilities into the core banking system,” it said.

For the full fiscal year, SSFB saw its net loss grow more than 38% to INR 216.7 Cr from INR 152.7 Cr loss incurred in FY24. The company’s total income surged more than 2.4X to INR 603.7 Cr from INR 251.4 Cr in the previous fiscal year. In this, interest income grew 109% YoY to INR 409.2 Cr while other income stood at INR 194.5 Cr.

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