Earnings Review
Equitas Small Fin Bank PAT jumps 5-fold as provisions slump
This story was originally published at 18:43 IST on 30 April 2026
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--Equitas Small Finance Bank Jan-Mar net profit INR 2.13 bln
--Analysts saw Equitas Small Finance Bank Jan-Mar net profit INR 1.47 bln
--Equitas Small Fin Bk Q4 net profit INR 2.13 bln vs INR 421.08 mln yr ago
--Equitas Small Fin Bk Q4 total income INR 21.00 bln vs INR 18.69 bln yr ago
--Equitas Small Fin Bk Q4 provisions INR 1.24 bln vs INR 2.58 bln yr ago
--Equitas Small Fin Bk gross NPA ratio 2.60% on Mar 31 vs 2.75% qtr ago
--Equitas Small Fin Bk net NPA ratio 0.72% on Mar 31 vs 0.92% qtr ago
--Equitas Small Fin Bk Basel-II capital adequacy ratio 20.31% on Mar 31
--Equitas Small Fin Bk FY26 net profit INR 1.03 bln vs INR 1.47 bln yr ago
--Equitas Small Fin Bk FY26 total income INR 78.88 bln vs INR 72.23 bln
By Durgesh Nandan
MUMBAI – Equitas Small Finance Bank Thursday reported an over five-fold year-on-year increase in its net profit for the March quarter, primarily supported by a sharp decline in provisions and a rise in net interest income. The bank's net profit exceeded the Street's estimates by a wide margin.
The bank's net profit for the reporting quarter rose to INR 2.13 billion, up over 405% on year. Sequentially, it rose over 136%. According to the average of estimates from eight brokerages, the bank's net profit for the quarter was seen at INR 1.47 billion.
The small finance bank's provisions and contingencies fell nearly 52% on year to INR 1.24 billion for the reporting quarter. Sequentially, it declined nearly 36%.
The bank's total income rose by 12% on-year and 6% on-quarter to INR 21.00 billion. Of this, interest earned rose nearly 12% on-year and more than 8% on-quarter to INR 18.36 billion. The lender's other income was INR 2.64 billion, up nearly 17% on-year but down 9% on-quarter.
Bank's net interest income – interest earned minus interest expended – rose 18% on year and 15% on quarter to INR 9.81 billion, for the March quarter. The private sector bank's net interest margin was 7.29%, up 57 basis points from the previous quarter.
The bank reported a significant expansion in its net interest margin, driven by higher interest income on advances. Net interest margin is also supported by a decline in interest expense, driven by a fall in the cost of funds to 6.94% in the quarter, from 7.13% in the trailing quarter, as per the bank's investor presentation.
The lender's gross non-performing asset ratio improved to 2.60% as of Mar. 31 from 2.75% a quarter ago. The net non-performing asset ratio also improved to 0.72% as of Mar. 31 from 0.92% a quarter ago.
The bank reported its highest-ever disbursements of INR 73.47 billion in the March quarter, up 72% on year. The small finance bank's total advances rose 22% on year to INR 461.65 billion as of Mar. 31, while overall deposits increased 8% on year to INR 465.33 billion.
For 2025-26 (Apr-Mar), the bank's net profit fell 30% to INR 1.03 billion. Total income in FY26 rose 9% to INR 78.68 billion.
Thursday, shares of Equitas Small Finance Bank ended at INR 66.85 on the National Stock Exchange, down 0.1% from the previous close. The bank announced its March quarter earnings after market hours. End
Edited by Saji George Titus
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