Equitas Bank reports strong loan growth, improved collections in Q2 FY26

Equitas Small Finance Bank reported robust growth in gross advances, which increased by 4.08% quarter-on-quarter (QoQ) to ₹39,145 crore as of September 30, 2025. This was driven by a 53% QoQ and 11% year-on-year (YoY) increase in disbursements. Total deposits also grew by 10.92% YoY, reaching ₹44,094 crore, with the CASA ratio improving to 31%.

The bank demonstrated improved asset quality and collection performance. Micro Finance and Micro Loan advances, which had previously degrown by 22% QoQ, showed a significant recovery, with the degrowth narrowing to just 3% QoQ. X Bucket collection efficiency in Microfinance and Micro Loans reached 98.56% overall, reflecting a consistent reduction in 1-90 DPD, which stood at 5.36% in September 2025.

Net slippages in the Small Business Loan segment also improved in Q2FY26, particularly in Karnataka. The POS value of fresh OD accounts has notably declined, indicating lower levels of stress. As of September 30, 2025, 91% of advances were secured, with 9% comprising Micro Finance & Micro Loans.