Equitas SFB Q2 gross advances up 9% to ₹39,145 crore; deposits rise 11%

Private sector lender Equitas Small Finance Bank Ltd on Saturday (October 4) reported a 4.08% quarter-on-quarter growth in gross advances to ₹39,145 crore as of September 30, 2025, compared to ₹37,610 crore in the previous quarter. On a year-on-year basis, gross advances rose 8.58%. The growth came on the back of improved disbursements of ₹5,381 crore, up 53% sequentially and 11% year-on-year.

Microfinance and micro loan advances stood at ₹3,414 crore, reflecting a 39.42% year-on-year and 3.46% sequential decline, compared to a 22% drop in the June 2025 quarter. Non-micro finance and micro loan advances grew 17.47% year-on-year and 4.87% quarter-on-quarter to ₹35,731 crore. Gross advances include ₹2,047 crore under IBPC/securitised/assigned portfolios as of September 30, 2025.

Total deposits stood at ₹44,094 crore, up 10.92% year-on-year but slightly down 0.57% sequentially. CASA deposits increased 12.78% year-on-year and 4.63% quarter-on-quarter to ₹13,622 crore, improving the CASA ratio to 31% from 29% in the previous quarter. The bank’s cost of funds declined to 7.35% from 7.49% in June 2025.

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The credit-deposit ratio improved to 84.14% in September 2025 from 79.91% in June 2025. After excluding refinance borrowings, the CD ratio stood at 78.57%. During the quarter, the bank sold non-performing assets worth approximately ₹216 crore to an Asset Reconstruction Company.

Collection efficiency in microfinance and microloans improved to 98.56% in Q2 FY26 from 97.97% in Q1 FY26. The 1–90 days past due (DPD) book reduced steadily to ₹183 crore in September 2025 from ₹365 crore in April 2025, with the 1–90 DPD ratio declining to 5.36%.

Fresh overdue (OD) accounts in the microfinance and micro loan segment dropped to ₹30.16 crore in September 2025 from ₹97.48 crore in April 2025, indicating reduced stress levels. In the small business loan segment, net slippages improved to 2.23% in Q2 FY26 from 3.22% in the previous quarter, with Karnataka showing notable improvement at 7.98% compared to 9.35% earlier.

Also Read: Equitas Small Finance Bank board approves fund raise of up to ₹1,250 crore via QIP

As of September 30, 2025, unsecured microfinance and microloans accounted for 9% of the loan portfolio, while secured loans comprised 91%. The figures are provisional and subject to audit review and board approval.

Shares of Equitas Small Finance Bank Ltd ended at ₹57.32, down by ₹0.45, or 0.79%, on the BSE.