Equitas Small Finance Bank announced a 36% year-over-year increase in quarterly Profit After Tax (PAT), reaching ₹90 crore. Gross Advances grew by 16% YoY and 11% QoQ. Deposits increased by 7% YoY, with CASA remaining stable at 30%. Disbursements saw significant growth, up 28% YoY and 22% QoQ. The bank continues to focus on expanding its reach and improving financial performance.
Financial Performance Highlights
Equitas Small Finance Bank (ESFB) has reported a strong financial performance. The bank’s Gross Advances witnessed a growth of 16% year-over-year (YoY) and 11% quarter-over-quarter (QoQ). Disbursements also showed robust growth, increasing by 28% YoY and 22% QoQ. Deposits grew by 7% YoY, while the CASA (Current Account Savings Account) ratio remained stable at 30%.
Profitability Surge
The bank’s quarterly Profit After Tax (PAT) stood at ₹90 crore, marking a significant increase of 36% YoY and a substantial 273% QoQ growth. This surge in profitability reflects the bank’s improved operational efficiency and effective management of its assets.
Business Segment Growth
Non-Microfinance book grew 19% YoY, driven by growth in Home Finance (17%), Micro and Small Enterprises (MSE) (35%), and Gold loans (110%). The overall deposits registered a growth of 7% YoY.
Key Business Metrics
The highest-ever overall Disbursements were recorded at ₹6,557 crore in Q3 (Oct-Dec) FY26, representing a growth of 28% YoY and 22% QoQ. The Small Business Loans (SBL) book grew by 14% YoY, with Secured BL, part of SBL, growing by 22% YoY and contributing 32% of the overall SBL portfolio. Used Car and Used CV Advances registered growth of 36% YoY and 23% YoY respectively. CASA ratio remained stable at 30%, while the Cost of Funds reduced to 7.13% in Q3 FY26 as compared to 7.35% in Q2 (Jul-Sep) FY26.
Key Ratios & Capital Adequacy
Net Interest Margin (NIM) for the quarter stood at 6.72%, a significant improvement of approximately 43 bps QoQ. Cost to Income stood at 72.96% in Q3 FY26, compared to 75.89% in Q2 FY26 and 68.30% in Q3 (Oct-Dec) FY25. The Networth of the Bank stands at ₹5,946 crore. As of December 31, 2025, the Total Capital to Risk-Weighted Assets Ratio (CRAR) stood at 20.47%, with Tier I at 16.63% and Tier II at 3.84%.
Asset Quality
The Gross Non-Performing Assets (GNPA) reduced by 20 bps QoQ to 2.62% in Q3 FY26, compared to 2.82% in Q2 FY26. Net Non-Performing Assets (NNPA) reduced by 7 bps QoQ to 0.88% in Q3 FY26, compared to 0.95% in Q2 FY26. Credit Cost reduced to 1.88% in Q3 FY26, compared to 2.16% in Q2 FY26 and 2.65% in Q3 FY25. Net Slippages reduced by 126 bps QoQ to 2.52% in Q3 FY26, compared to 3.78% in Q2 FY26.
Source: BSE
