Equitas Small Finance Bank announced its unaudited financial results for the quarter and half-year ended September 30, 2026. The bank achieved its highest-ever quarterly Profit After Tax (PAT) of ₹218 crore, marking an impressive 803% year-on-year growth. Total business crossed the ₹1 Lakh Crore milestone, with advances growing 30% YoY and deposits increasing by 19% YoY.
Equitas Small Finance Bank Reports Record Quarterly Profit
Chennai, October 29, 2026 – Equitas Small Finance Bank Limited today announced its unaudited financial results for the second quarter and half-year ended September 30, 2026. The Board of Directors approved the results at a meeting held today. The bank achieved a significant milestone, with its total business crossing the ₹1 Lakh Crore mark in the second quarter of Fiscal Year 2027 (Q2FY27).
Key Financial Highlights for Q2FY27
The bank reported its highest-ever quarterly Profit After Tax (PAT) of ₹218 crore in Q2FY27, representing a substantial 803% growth year-on-year and a 19% increase quarter-on-quarter. Return on Assets (ROA) and Return on Equity (ROE) for the quarter stood at 1.31% and 13.50%, respectively. Gross advances saw a robust growth of 30% year-on-year and 6% quarter-on-quarter, crossing the ₹50,000 crore milestone. Total deposits also grew by 19% year-on-year and 7% quarter-on-quarter, reaching a similar milestone.
Business Performance and Growth Drivers
In terms of business highlights, overall disbursements in Q2FY27 stood at ₹7,450 crore, up 38% year-on-year and 10% quarter-on-quarter. Non-MFI advances grew by 24% year-on-year, driven by strong performance in MSE growth (38%), Housing Finance (27%), and Gold Loans (193%). Advances in the Used Car and Used Commercial Vehicle segments also showed healthy growth at 29% and 21% year-on-year, respectively. The CASA Ratio was maintained at 26%, though the cost of funds increased by 7 bps to 7.12% in Q2FY27.
Profitability and Key Ratios
Net income for Q2FY27 increased by 32% year-on-year and 3% quarter-on-quarter, while operating expenses grew by 20% year-on-year and 4% quarter-on-quarter. The Net Interest Margin (NIM) for Q2FY27 was 6.69%, a decrease of 55 bps from the previous quarter. The cost-to-income ratio stood at 69.36% for Q2FY27, compared to 68.38% in Q1FY27 and 75.89% in Q2FY26. The cost-to-assets ratio was 5.49% in Q2FY27.
Asset Quality and Capital Adequacy
Asset quality showed improvement, with Gross NPA decreasing by 13 bps quarter-on-quarter to 2.29% and Net NPA improving by 1 bps to 0.70%. The provision coverage ratio remained stable at 70.08% (86.73% including technical write-offs). Net slippages improved by 4 bps to 1.39%. Credit cost declined to 0.94% in Q2FY27.
As of September 30, 2026, the Bank’s net worth was ₹6,553 crore. The total CRAR stood at a healthy 20.92%, with Tier I capital at 16.35% and Tier II capital at 4.57%. The Liquidity Coverage Ratio was robust at 173.30% as of the same date.
Source: BSE
