Subscribe

0

Banking & Finance

Equitas Small Finance Bank Ltd Q1 Advances up 8% YoY, Deposits Rise 18%

Equitas Small Finance Bank's Q1FY26 saw a muted 8% YoY advance growth and 18% YoY deposit growth. The bank reported a PAT miss due to a one-time provision of ₹330 crore.

author-image
SMEStreet Edit Desk
New Update
Equitas
Listen to this article
0.75x 1x 1.5x
00:00 / 00:00

The Board of Directors of Equitas Small Finance Bank Limited at its meeting held today, approved the unaudited financial results for quarter ended June 30, 2025

Advances grew by 8% YoY supported by 18% growth in Non-MFI advances

Deposits grew by 18% YoY; Growth in Retail TD of 20% YoY

Bank made one time additional provisions of Rs. 330 Crs during the quarter, resulting in PAT miss

  1. Key Highlights for Q1FY26:

  • Secured loan advances forms 91% of the total advances of the Bank

  • Gross Advances growth remained muted at 8% YoY and flat QoQ as Microfinance loan book contracts. Non Microfinance book grew 18% YoY, led by 22% growth in SBL over previous year.

  • Overall deposits registered a growth of 18% YoY & 3% QoQ 

  1. Business Highlights:

  • Vehicle Finance portfolio has crossed Rs. 9500 Crs during the quarter. 

  • Used Car Advances crossed Rs. 2000 Crs, registered a growth of 50% YoY.

  • Used CV Advances registered a growth of 26% YoY

  • CASA ratio stable at 29%; CA balances grew 92% YoY. 

  • Retail Term Deposits posted a growth of 20% YoY to Rs. 19,354 Crs 

   Key Ratios: 

  • NIM for the quarter stood at 6.55% 

  • Cost to Income stood at 70.62% in Q1FY26 as compared to 70.28% in Q4FY25 and 65.75% in Q1FY25

   Capital:

  • Networth of the Bank stands at Rs. 5,849 Crs

  • As of June 30, 2025, Total CRAR at 20.48% | Tier I at 17.16% and Tier II at 3.32%

  • Tier II capital raised of Rs. 500 Cr in July ’25, improving CAR further by about 1.7%

 Treasury & Liquidity:

  • The Bank’s Certificate of Deposit (CD) programme has highest rating at A1+ from India Ratings, CareEdge Ratings & CRISIL

  • Liquidity Coverage Ratio (LCR) as on 30.06.2025 is 209.5%

  • Profit on sale of Investments for the quarter is Rs. 116 Crs

  1. Profit & Loss: 

  • Net Income and Total Opex grew by 8% and 16% YoY in Q1FY26

  • The Bank has made Additional Standard Asset Provision (One-time Impact) of Rs.185 Crs in Microfinance and Rs.145 Crs for Additional NPA Provision due to change in Provisioning norms, resulting in a Loss of Rs. 224 Cr for the quarter

  1. Asset Quality:

  • GNPA improved by 7 bps QoQ to 2.82% in Q1FY26 as compared to 2.89% in Q4FY25

  • NNPA improved by 3 bps QoQ to 0.95% in Q1FY26 as compared to 0.98% in Q4FY25

Equitas Small Finance Bank Equitas SFB