Equitas Small Finance Bank swings to profit in Q2FY26

Equitas Small Finance Bank Limited reported a profit after tax (PAT) of Rs. 24 crore for Q2FY26, a notable improvement from a loss of Rs. 224 crore in Q1FY26. The bank's gross advances grew by 9% year-over-year (YoY) and 4% quarter-over-quarter (QoQ), with its secured small business loan (SBL) portfolio surpassing Rs. 17,000 crore, marking a 17% YoY growth. Overall deposits increased by 11% YoY, and disbursements also saw an 11% YoY and 53% QoQ growth.

The bank's asset quality showed stability, with gross non-performing assets (GNPA) remaining flat QoQ at 2.82% and net non-performing assets (NNPA) flat QoQ at 0.95% in Q2FY26. Credit cost significantly improved to 2.16% in Q2FY26 from 6.48% in Q1FY26. The bank’s capital adequacy ratio (CRAR) stood at 20.74% as of September 30, 2025, with tier I at 16.44% and tier II at 4.30%. The networth of the bank stands at Rs. 5,858 crore.

Other highlights include used car advances crossing Rs. 2,100 crore (43% YoY growth) and used CV advances reaching Rs. 5,000 crore (25% YoY growth). The bank also sold NPA assets amounting to ~Rs. 216 crore to an asset reconstruction company. The CASA ratio remained stable at 31%, and retail term deposits posted an 11% YoY growth to Rs. 19,272 crore.