{"id":178433,"date":"2026-01-30T03:53:45","date_gmt":"2026-01-30T08:53:45","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=178433"},"modified":"2026-01-30T03:53:45","modified_gmt":"2026-01-30T08:53:45","slug":"equitas-small-finance-bank-reports-profit-growth-and-improving-asset-quality-in-q3-fy26","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/equitas-small-finance-bank-reports-profit-growth-and-improving-asset-quality-in-q3-fy26\/","title":{"rendered":"Equitas Small Finance Bank reports profit growth and improving asset quality in Q3 FY26"},"content":{"rendered":"\n<p><strong>Equitas Small Finance Bank Ltd (BSE: 543243 \/ NSE: EQUITASBNK)<\/strong> reported higher profitability and credit growth in the quarter ended December 2025, supported by rising advances, improved asset quality and stable deposit mobilisation, according to its Q3 FY26 disclosures. The bank reported profit after tax (PAT) of \u20b990 crore in Q3 FY26, up 36% year-on-year and 273% sequentially. Gross advances grew 16% year-on-year to \u20b943,268 crore, while deposits increased 7% to \u20b943,668 crore.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Business overview<\/strong><\/h2>\n\n\n\n<p>Equitas Small Finance Bank provides retail and MSME-focused banking services with a diversified loan portfolio spanning small business loans, vehicle finance, housing finance, microfinance and MSME lending. As of December 2025, small business loans accounted for 41% of gross advances, vehicle finance 23%, housing finance 12% and microfinance 12%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Financial performance<\/strong><\/h2>\n\n\n\n<p>Net interest income rose 4% year-on-year to \u20b9852 crore in Q3 FY26, while other income increased 23% to \u20b9285 crore. Net income grew 8% to \u20b91,137 crore, while operating expenses rose 16% to \u20b9829 crore.<\/p>\n\n\n\n<p>PAT increased to \u20b990 crore from \u20b966 crore in Q3 FY25, despite a one-time incremental provision of \u20b929.52 crore linked to the implementation of a new labour code. Net interest margin stood at 6.72%, improving by around 43 basis points sequentially, while cost-to-income ratio declined to 72.96% from 75.89% in Q2 FY26.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Operating metrics<\/strong><\/h2>\n\n\n\n<p>Gross advances rose 16% year-on-year and 11% sequentially, supported by robust disbursements across secured and unsecured segments. Disbursements reached a record \u20b96,557 crore in Q3 FY26, up 28% year-on-year.<\/p>\n\n\n\n<p>Deposits grew 7% year-on-year, with CASA ratio stable at 30%. Cost of funds declined to 7.13% from 7.35% in the previous quarter.<\/p>\n\n\n\n<p>Asset quality improved, with gross non-performing assets (GNPA) declining to 2.62% from 2.82% in Q2 FY26 and net NPA falling to 0.88%. Credit cost declined to 1.88%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Capital and liquidity<\/strong><\/h2>\n\n\n\n<p>The bank reported a capital adequacy ratio (CRAR) of 20.47%, with Tier I capital at 16.63%. Liquidity coverage ratio stood at 148.84% as of December 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key developments<\/strong><\/h2>\n\n\n\n<p>Equitas highlighted strong growth in secured portfolios, including housing finance, MSME lending and gold loans, alongside stabilisation in microfinance collections. The bank also reported record non-microfinance disbursements and improved collection efficiency during the quarter.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Risks and constraints<\/strong><\/h2>\n\n\n\n<p>The bank\u2019s disclosures indicate that profitability remains sensitive to credit costs, asset quality trends, funding costs, portfolio mix shifts and macroeconomic conditions affecting borrower segments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Outlook and commentary<\/strong><\/h2>\n\n\n\n<p>Management stated that improvements in asset quality, declining cost of funds and growth in secured lending supported operating performance in Q3 FY26.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Equitas Small Finance Bank Ltd (BSE: 543243 \/ NSE: EQUITASBNK) reported higher profitability and credit growth in the quarter ended December 2025, supported by rising advances, improved asset quality and stable deposit mobilisation, according to its Q3 FY26 disclosures. The bank reported profit after tax (PAT) of \u20b990 crore in Q3 FY26, up 36% year-on-year [&hellip;]<\/p>\n","protected":false},"author":2390,"featured_media":125416,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[392,1941,1,5],"tags":[15119,15127,15123,14580,15118,15128,15124,15125,15116,15126,15121,15120,15117,14559,15122],"class_list":["post-178433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings","category-stock-analysis","category-finance-stocks","category-latest","tag-asset-quality","tag-banking-sector-india","tag-bse-543243","tag-corporate-earnings-india","tag-equitas-earnings","tag-equitas-q3-fy26","tag-equitas-results","tag-equitas-sfb","tag-equitas-small-finance-bank","tag-microfinance-india","tag-msme-lending","tag-net-interest-margin","tag-nse-equitasbnk","tag-quarterly-results-india","tag-small-finance-banks-india"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":140565,"url":"https:\/\/alphastreet.com\/india\/equitas-small-finance-q3-fy23-pat-surges-up-to-%e2%82%b9170-crore-year-on-year\/","url_meta":{"origin":178433,"position":0},"title":"Equitas Small Finance Q3 FY23; PAT Surges Up To \u20b9170 Crore Year On Year","author":"Hardik Bhandare","date":"February 8, 2023","format":false,"excerpt":"Equitas Small Finance Bank Limited (NSE: EQUITASBNK) reported a Revenue from Operations of \u20b91,216.03 Crores, a significant boost of 17% growth from the previous year. The Consolidated Net Profit for the business increased by 57% year over year, to \u20b9170.12 Crore from \u20b9108.1 Crore. Earnings per Share is \u20b91.34 for\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/475e72ba-0179-4269-b12c-ff0ee1df53c6-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/475e72ba-0179-4269-b12c-ff0ee1df53c6-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/475e72ba-0179-4269-b12c-ff0ee1df53c6-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/475e72ba-0179-4269-b12c-ff0ee1df53c6-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/475e72ba-0179-4269-b12c-ff0ee1df53c6-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/475e72ba-0179-4269-b12c-ff0ee1df53c6-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":142400,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-equitas-small-finance-bank-for-q3-fy23\/","url_meta":{"origin":178433,"position":1},"title":"Earnings Summary Of Equitas Small Finance Bank For Q3 FY23","author":"Hardik Bhandare","date":"February 8, 2023","format":false,"excerpt":"Equitas Small Finance (NSE: EQUITASBNK) is a microfinance lender based in India, offering a range of financial services to small businesses and individuals. The company operates primarily in the southern and western regions of India and has a strong presence in urban and semi-urban areas. In terms of earnings, Revenue\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-2.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-2.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-2.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-2.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-2.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/02\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-3-2.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":145174,"url":"https:\/\/alphastreet.com\/india\/earnings-summary-of-equitas-small-finance-bank-limited-for-q4-fy23\/","url_meta":{"origin":178433,"position":2},"title":"Earnings Summary Of Equitas Small Finance Bank Limited For Q4 FY23","author":"Hardik Bhandare","date":"May 5, 2023","format":false,"excerpt":"Equitas Small Finance Bank Limited is a scheduled commercial bank in India, which was established in 2007 as Equitas Micro Finance Limited. In 2016, it received the Small Finance Bank license from the Reserve Bank of India and became a small finance bank. The bank provides a range of banking\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/898c572d-b97a-4c10-acd3-c5f4d9ad88be-7.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":145192,"url":"https:\/\/alphastreet.com\/india\/equitas-small-finance-bank-limited-q4-fy23-net-profit-surged-by-59\/","url_meta":{"origin":178433,"position":3},"title":"Equitas Small Finance Bank Limited Q4 FY23; Net Profit Surged By 59%","author":"Hardik Bhandare","date":"May 5, 2023","format":false,"excerpt":"Equitas Small Finance Bank Limited reported Total Income for Q4 FY23 of \u20b91,394.41 Crore up from \u20b91,043.97 Crore year on year, a growth of 33.6%. Consolidated Net Profit of \u20b9190.03 Crore, up 59% from \u20b9119.50 Crore in the same quarter of the previous year. The Earnings per Share is \u20b91.69,\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/9d866748-f46f-4e01-b708-25c8be5b8792.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/9d866748-f46f-4e01-b708-25c8be5b8792.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/9d866748-f46f-4e01-b708-25c8be5b8792.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/9d866748-f46f-4e01-b708-25c8be5b8792.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/9d866748-f46f-4e01-b708-25c8be5b8792.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/9d866748-f46f-4e01-b708-25c8be5b8792.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":167631,"url":"https:\/\/alphastreet.com\/india\/equitas-small-finance-bank-ltd-q3fy25-73-rise-in-profits\/","url_meta":{"origin":178433,"position":4},"title":"Equitas Small Finance Bank Ltd Q3FY25; 73% rise in Profits","author":"Divyansh_Kasana","date":"March 28, 2025","format":false,"excerpt":"Equitas Small Finance Bank Ltd before acquiring small bank license, operated as a wholly-owned subsidiary of Equitas Holding Ltd. The holding entity started its operations in 2007 in the microfinance segment & diversified into vehicle & housing finance in 2011. Also entered into SME & LAP in 2013. 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