Quick Take
- Slice Posts FY26 Profit of Rs 27.97 Cr over nine months, swinging from a Rs 217 Cr loss.
- AUM grew 254% YoY to Rs 3,759 Cr, deposits rose 61% to Rs 3,896 Cr.
- Crisil revised outlook to Positive as net worth jumped to Rs 891 Cr from Rs 61 Cr.
Slice Posts FY26 Profit of Rs 27.97 Cr (about $3.4 Mn) over the first nine months of its first full fiscal year as a merged bank, after combining with North East Small Finance Bank (NESFB) in October 2024.
The Bengaluru-based small finance bank made this leap after sliding to a Rs 217 Cr ($26 Mn) loss in FY25. The merger gave the fintech a full banking licence. FY26 (April 2025 to March 2026) is the first complete fiscal year of the unified entity, now called slice Small Finance Bank Limited.
StartupFeed Insight
The numbers behind Slice Posts FY26 Profit tell a deeper story. Net interest margin (NIM, what the bank earns on loans minus what it pays for deposits) hit 11.1% in H1 FY26. That is more than double the industry average for small finance banks. The real watch list is the cost-to-income ratio, which sat at 83.43% in nine-month FY26. Established peers like AU SFB run at 60 to 65%. The next 18 months will test if Slice can compress this gap. Expect a fresh capital raise of $200 to $300 Mn by late 2026, ahead of an IPO push by FY29. By StartupFeed Desk.
Slice Posts FY26 Profit: Key Financial Numbers
| Metric | Detail | Notes |
|---|---|---|
| 9M FY26 PAT | Rs 27.97 Cr (~$3.4 Mn) | Profit After Tax for April to December 2025. |
| H1 FY26 PAT | Rs 7 Cr (~$0.8 Mn) | First profitable half-year after merger, per CRISIL. |
| FY25 Net Loss | Rs 217 Cr (~$26 Mn) | Loss widened from Rs 153 Cr in FY24. |
| Total Income (H1 FY26) | Rs 632 Cr (~$76 Mn) | Already higher than full FY25 income of Rs 604 Cr. |
| AUM (Sept 2025) | Rs 3,759 Cr (~$451 Mn) | Up 254% YoY from Rs 2,954 Cr in FY25. |
| Net Worth (Sept 2025) | Rs 891 Cr (~$107 Mn) | Up from Rs 61 Cr in March 2024. |
The most striking number is the deposit base. It rose 61% in H1 FY26 to Rs 3,896 Cr (about $468 Mn). The CASA (Current Account Savings Account) ratio held at a healthy 27.5%.
About Slice
Slice Small Finance Bank, founded in 2016 by Rajan Bajaj, is a Bengaluru-based digital bank. It serves over 20 million registered users and employs more than 3,000 people. In October 2024, it became India’s first fintech to complete a full operational merger with a licensed small finance bank, North East Small Finance Bank. Backed by Tiger Global, Insight Partners, Advent International, and Blume Ventures, slice has raised over $250 Mn (Rs 2,083 Cr) to date.
How Slice Posts FY26 Profit: Inside the Turnaround
Three forces drove the swing. First, deposits. The banking licence lets slice raise public deposits instead of borrowing from other lenders. This cut the cost of funds. Second, NIM expanded sharply, hitting 11.1% in H1 FY26, more than double the industry norm. Third, AUM growth. The book grew 254% YoY to Rs 3,759 Cr, with digital unsecured personal loans making up 76% of the mix.
“We have turned profitable post-tax on a monthly basis and will close the year in profits.”
Rajan Bajaj, Founder and Executive Director, slice Small Finance Bank, told PTI in June 2025. The Reserve Bank of India (RBI) approved Bajaj as MD and CEO in February 2026.
How does Slice compare to other small finance banks?
| Bank | NIM (Latest) | Cost-to-Income |
|---|---|---|
| slice SFB | 11.1% (H1 FY26) | 83.43% (9M FY26) |
| AU SFB | ~5.5 to 6% | ~62% |
| Equitas SFB | ~7.5% | ~65% |
| Suryoday SFB | ~7.2% | ~57% |
Slice runs much higher NIM than peers because of its digital unsecured book. But its cost-to-income ratio is far above the industry norm. The gap reflects branch investment, technology spending, and headcount build-out after the merger. The catch-up question is how fast operating costs bend before capital runs thin.
What’s Next
Watch three signals over the next 18 months. First, the FY26 full-year PAT, due in audited filings by August 2026. Second, a likely $200 to $300 Mn equity raise by late 2026. Third, a possible IPO filing in FY29, after slice transitions toward universal bank status. Bajaj has hinted at this path. Will the cost-to-income ratio fall below 70% by FY27?
Frequently Asked Questions
How much profit did Slice post in FY26?
Slice Posts FY26 Profit of Rs 27.97 Cr (about $3.4 Mn) over the first nine months (April to December 2025), as disclosed in CRISIL Ratings filings. This is a sharp turnaround from the Rs 217 Cr loss in FY25. H1 FY26 alone delivered Rs 7 Cr in PAT, the first profitable half-year after the NESFB merger.
What is slice Small Finance Bank?
Slice Small Finance Bank is a Bengaluru-based digital bank formed by the October 2024 merger of fintech slice and North East Small Finance Bank. It offers savings accounts, fixed deposits, UPI services, and India’s first UPI-linked credit card. Rajan Bajaj is the founder, MD, and CEO. The bank serves over 20 million users.
How did the NESFB merger help slice turn profitable?
The banking licence let slice raise public deposits directly instead of borrowing from other lenders at higher cost. Deposits grew 61% to Rs 3,896 Cr in H1 FY26. The lower cost of funds lifted net interest margin to 11.1%. AUM also grew 254% YoY to Rs 3,759 Cr, scaling income faster than expenses.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. StartupFeed and its authors are not SEBI-registered investment advisors. The analysis above is based on publicly available information and should not be the sole basis for any investment decision. Please consult a SEBI-registered financial advisor before making investment decisions.
Written by Harshvardhan jain . Published: May 26, 2026. Updated: May 26, 2026. Have a tip? Write to us at editorial@startupfeed.in.
