Equitas Small Finance Bank Ltd reported a fivefold increase in net profit at ₹213 crore for the March quarter of FY26 compared with the year-ago period, supported by strong growth and improved margins.
Net interest margin rose to 7.29% from 7.13%, while cost-to-income ratio declined to 67.52% from 70.28%.
Asset quality and capital position
Gross non-performing assets declined to 2.46% from 2.89%, while net NPA fell by 30 basis points to 0.68%. Provision coverage ratio stood at 73.03%.
The bank reported a net worth of ₹6,125 crore, with capital adequacy ratio at 20.31%.
Loan growth across segments
Gross advances grew 22% to ₹46,165 crore, driven by robust disbursements across segments, with microfinance disbursements rising 326%.
Excluding direct assignment outstanding, overall advances grew 19%, while the non-MFI book expanded 21%, led by growth in housing finance (21%), MSE (24%) and gold loans (180%), with the gold loan portfolio crossing ₹850 crore.
Portfolio mix and deposits
Secured business loans grew 27%, contributing 33% of the portfolio, while used car and used commercial vehicle segments grew 31% and 25%, respectively.
CASA ratio stood at 26% compared with 29% a year ago.
Outlook for FY27
The bank has guided for over 20% growth in advances in FY27, with microfinance expected to account for around 10% of the overall portfolio.
Cost-to-income ratio is expected to moderate in the second half of FY27, while credit costs are likely to normalise after benefiting from seasonal factors in Q4.