Equitas Small Finance Bank Posts 16% YoY growth in advances amid improving collections in Q3 FY26

Equitas Small Finance Bank Limited showcased resilient provisional performance as of December 31, 2025, with gross advances (including IBPC/securitized/assigned portfolio of ₹2,674 crore) reaching ₹43,269 crore-a robust 15.86% year-over-year (YoY) increase from ₹37,344 crore in December 2024 and 10.60% quarter-over-quarter (QoQ) from ₹39,123 crore as of September 30, 2025. Excluding a ₹1,343 crore direct assignment purchase of agri assets, overall advances grew 12.27% YoY and 7.16% QoQ.

Microfinance and micro loans stood at ₹5,159 crore, up 51.94% QoQ but down 3.93% YoY, while non-micro segments expanded 19.19% YoY and 6.67% QoQ to ₹38,110 crore. Total deposits were ₹43,668 crore, up 7.24% YoY from ₹40,719 crore but down 0.97% QoQ from ₹44,094 crore. CASA deposits hit ₹12,886 crore (10.62% YoY growth, -5.40% QoQ), supporting a 30% CASA ratio and declining cost of funds at 7.13% (from 7.49% YoY). The CD ratio sharpened to 92.96% (85.41% after reducing refinance borrowings), up from 79.91% in June 2025.

Strong Recovery in Asset Quality Trends

Collections gained traction, with 1-90 DPD in MFI and micro loans dropping sharply to ₹106 crore (2.77%) in December 2025 from ₹365 crore (8.45%) in April 2025. X-bucket collection efficiency in these segments improved progressively: 98.69% (Oct), 99.12% (Nov), and 99.12% (Dec), with Q3 FY26 at 98.99% overall (Tamil Nadu 99.09%, Karnataka 98.11%). Fresh OD principal outstanding fell to ₹19.59 crore in December from ₹97.48 crore in April, and net slippages eased to 1.47% in Q3 FY26 from 3.22% in Q1 FY26 (Karnataka down to 4.61%).

Portfolio Composition

As of December 31, 2025, microfinance and micro loans (unsecured) comprised 12% of the mix including DA (9% excluding DA), with all other secured loans forming the balance at 88-91%. These trends signal reduced stress, lower future NPAs, and controlled credit costs ahead.

Equitas' focus on secured lending (91% excluding DA) and collection discipline positions it for sustained profitability in the small finance banking arena. Provisional figures are subject to technical write-offs and potential changes.

The numbers mentioned above as on December 31, 2025 are provisional numbers and is subject to limited review by the Joint Statutory Auditors of the Bank and approval of the Audit Committee and Board of Directors.

Shares of Equitas Small Finance Bank Limited was last trading in BSE at Rs. 64.11 as compared to the previous close of Rs. 63.93. The total number of shares traded during the day was 210649 in over 1079 trades.

The stock hit an intraday high of Rs. 66.00 and intraday low of 63.38. The net turnover during the day was Rs. 13627352.00.

Source : Equity Bulls

Keywords

EquitasSmallFinanceBank INE063P01018 Q3FY26 BusinessUpdate