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Informist, Friday, Oct. 31, 2025

 

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--Equitas Small Finance Bank Jul-Sept net profit INR 241.35 mln 
--Equitas Small Finance Bk Q2 net profit INR 241.35 mln vs INR 128.83 mln 
--Equitas Small Fin Bk Q2 total income INR 18.46 bln vs INR 17.94 bln 
--Equitas Small Fin Bk Q2 provisions INR 2.07 bln vs INR 3.30 bln 
--Equitas Small Fin Bk gross NPA ratio 2.92% as on Sept 30, unch from qtr ago 
--Equitas Small Fin Bk net NPA ratio 0.98% as on Sept 30, unch from qtr ago 
--Equitas Small Fin Bk capital adequacy ratio Basel-II 20.74% as on Sept 30 
--Equitas Small Fin Bk H1 net loss INR 2.00 bln vs INR 386.40 mln PAT bln 
--Equitas Small Fin Bk H1 net loss INR 2.00 bln vs INR 386.40 mln PAT yr ago 
--Equitas Small Fin Bk H1 total income INR 37.87 bln vs INR 35.03 bln 

 

By Ashutosh Pati

 

MUMBAI – Equitas Small Finance Bank Ltd. reported a sharp rise in net profit for the September quarter, mainly because of a low base in the year-ago period, but still missed the Street's view. The bank's total income rose slightly on year during the quarter. However, the lender registered a loss for the first half of the financial year 2025-26 (Apr-Mar).

 

The bank's net profit rose over 87% on year to INR 241.35 million for the September quarter, lower than analysts' expectation of a profit of INR 273.25 million. A year ago, the lender had reported a 94?ll in net profit due to a five-fold jump in provisions.

 

The bank's net profit was also supported by a significant drop in provisions during the reporting quarter. The provisions fell over 37% on year to INR 2.07 billion. The gross non-performing asset ratio of the bank was 2.92% as on Sept. 30, unchanged from the trailing quarter. The net non-performing asset ratio was 0.98% as on Sept. 30, also unchanged from the previous quarter. The bank's slippage ratio improved around 1% sequentially to 3.78%. Its provision coverage ratio was 85.38% as on Sept. 30, down from 85.58% a quarter ago.

 

The lender's credit cost improved to 2.16% in the September quarter from 6.48% in the trailing quarter and 3.72% a year ago. Its cost of funds fell 14 basis points from the trailing quarter to 7.35%. The bank's Basel-II capital adequacy ratio was 20.74%, up from 19.36% a year ago. Its liquidity coverage ratio was 184.44% as of Sept. 30.

 

The bank's total income rose around 3% on year to INR 18.46 billion. On the business side, its gross advances rose 9% on year to INR 391.23 billion. The bank registered 17% year-on-year growth in secured small business loans to INR 171.88 billion. The bank's net interest margin in the reporting quarter was 6.29%.

 

The bank's overall deposits rose 11% on year to INR 440.94 billion in the September quarter. Its total operating expenditure rose 11% on year to INR 7.57 billion but was largely unchanged from the trailing quarter. The bank's credit-deposit ratio in the quarter was 84.09%, up from 79.91% in the June quarter. In its investor presentation, the bank said it expects to be able to sustain the ratio at a similar level.

 

For the half-year ended Sept. 30, the bank reported a net loss of INR 2 billion. A year ago, it had reported a profit of INR 386.40 million for the corresponding period. Its total income for Apr-Sept rose to INR 37.87 billion from INR 35.03 billion a year ago. Friday, shares of Equitas Small Finance Bank closed 3.8% lower at INR 56.99 on the National Stock Exchange.  End

 

Edited by Rajeev Pai

 

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