Equitas Small Finance Bank has released its provisional business performance for the quarter ended March 31, 2026. The bank reported robust growth in gross advances, which rose by 21.58% year-on-year to ₹46,183 crore. Additionally, the bank demonstrated strengthening asset quality, highlighted by a steady improvement in collection efficiencies across its microfinance and micro-loan portfolio, signaling a normalization of credit stress and positive momentum heading into the new fiscal year.
Strong Growth in Advances
During the final quarter of the fiscal year, Equitas Small Finance Bank achieved significant business expansion. Gross advances climbed to ₹46,183 crore, representing a 21.58% year-on-year increase and a 6.74% quarter-on-quarter rise. This growth was fueled by robust disbursements totaling ₹7,347 crore, which marked a 12.05% sequential increase and an impressive 72.19% year-on-year growth.
Deposit and Liquidity Trends
Total deposits for the quarter reached ₹46,533 crore, reflecting a 7.96% year-on-year growth. The bank maintained a focus on operational efficiency, with the cost of funds improving to 6.93%. As of March 31, 2026, the Credit-to-Deposit (CD) ratio stood at 93.69%, or 83.44% after accounting for refinance borrowings.
Asset Quality Improvements
The bank’s microfinance and micro-loan portfolio showed consistent improvement in credit performance. The 1-90 days past due (DPD) metrics saw a steady decline, dropping from 4.34% in October 2025 to 1.43% by March 2026. Furthermore, X-bucket collection efficiency reached 99.71% for the quarter, indicating that credit stress has largely stabilized. This trend is mirrored in the sharp reduction of fresh overdue (OD) accounts, which hit their lowest levels by the end of the quarter.
Loan Portfolio Mix
As of March 31, 2026, the bank’s loan composition reflects a diversified strategy. Excluding direct assignments, the portfolio is comprised of 10% in microfinance and micro-loans (unsecured) and 90% in secured loans, ensuring a balanced risk profile moving forward.
Source: BSE
