Slice Small Finance Bank has reported a net profit of Rs 48.4 crore for FY26, its first full financial year after the fintech startup completed its merger with North East Small Finance Bank, marking a turnaround from a Rs 216.7 crore loss in the previous year.
Total income more than doubled to Rs 1,402.7 crore in FY26 from Rs 603.8 crore in FY25, the fintech said in its audited financial results for the year ended March 31, 2026.
For the March quarter, Slice reported a net profit of Rs 20.4 crore on total income of Rs 399.7 crore, compared with a net loss of Rs 89.9 crore in the same period last year.
The improvement is significant for Slice, which is currently in discussions to raise a $50-100 million funding round, at a lower valuation of under $1 billion. ET exclusively reported on Slice’s fundraising plans on April 8, noting that Slice wants to reposition itself as a digital bank.
Slice has spent the past two years trying to rebuild itself as a full-stack lender after regulatory changes disrupted its earlier credit-led model.
Founded by Rajan Bajaj, Slice had started as a fintech company offering credit through prepaid cards, but its core business was hit in 2022 after the Reserve Bank of India barred prepaid instruments from being loaded through credit lines.
Slice then moved deeper into lending before securing a rare banking route through its merger with North East Small Finance Bank. The merger was completed in October 2024, after receiving regulatory and shareholder approvals, including an earlier no-objection clearance from the RBI and clearances from the Competition Commission of India and the National Company Law Tribunal.
The turnaround also comes after a difficult first year for the combined entity. ET had reported earlier that Slice’s FY25 loss widened to Rs 216 crore even as revenue rose, mainly because of higher provisions and operating costs. The bank had also inherited a weak loan book from North East Small Finance Bank, which had a high level of bad loans and needed fresh capital before the merger.
As of March 31, Slice’s net worth stood at Rs 875.3 crore, while its capital to risk-weighted assets ratio was 19.1%, above regulatory requirements. The debt-equity ratio had improved to 0.14 from 0.97 a year earlier. The bank’s CASA ratio stood at 39.8%, while retail term deposits and CASA together made up 94.2% of total deposits.
“We are expanding our merchant and business banking and using AI to meaningfully raise the bar on what customers should expect from a bank. The global macro has uncertainties, but they always do. AI and digital infrastructure are one of the great investment cycles of our generation, and India is right in the middle of it,” said Rajan Bajaj, managing director and CEO, Slice.
“UPI brought hundreds of millions of Indians into the digital economy, and that's a remarkable foundation to build on. The RBI has done an outstanding job, and the Indian banking system is one of the strongest in the world today,” he added.
The lender recently launched Slice One, a self-serve banking machine aimed at expanding into merchant and business banking.
