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Informist, Tuesday, Jul. 28, 2026

 

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--Equitas Small Finance Bank Apr-Jun net profit INR 1.84 bln 
--Analysts saw Equitas Small Fin Bk Apr-Jun net profit at INR 1.67 bln 
--Equitas Small Finance Bank Apr-Jun total income INR 22.15 bln 
--Equitas Small Fin Bk Q1 net profit INR 1.84 bln vs loss INR 2.24 bln yr ago 
--Equitas Small Fin Bk Q1 total income INR 22.15 bln vs INR 19.41 bln yr ago 
--Equitas Small Fin Bk Q1 provisions INR 1.61 bln vs INR 6.12 bln yr ago 
--Equitas Small Fin Bk gross NPA ratio 2.42% on Jun 30 vs 2.60% qtr ago 
--Equitas Small Fin Bk net NPA ratio 0.71% on Jun 30 vs 0.72% qtr ago 
--Equitas Small Fin Bk basel-II capital adequacy ratio 19.44% on Jun 30 
--Equitas Small Fin Bk Apr-Jun net interest margin 7.24%, down 12 bps on qtr 
--Equitas Small Fin Bk disbursements INR 67.84 bln on Jun 30, up 93% on year 

 

By Durgesh Nandan

 

MUMBAI – Equitas Small Finance Bank Tuesday reported a net profit for the June quarter compared to a net loss in the year-ago quarter, primarily due to a sharp decline in provisions. The bank's net profit exceeded the Street's estimates.

The bank's net profit for the reporting quarter was INR 1.84 billion, compared to a net loss of INR 2.24 billion year-on-year. Sequentially, the profit was down nearly 14%. Analysts had estimated the bank's net profit at INR 1.67 billion. The small finance bank's provisions and contingencies fell nearly 74% on year to INR 1.61 billion for the reporting quarter but were up sequentially over 29%.

 

The bank's total income rose over 14% on year and 6% on quarter to INR 22.16 billion. Interest earned rose to INR 19.60 billion, up nearly 19% onyear and around 7% on quarter. The lender's other income declined nearly 13% on-year and 3% sequentially to INR 2.55 billion. 

 

The bank's net interest income rose 31% on year and 5% on quarter to INR 10.30 billion for the reporting quarter. The private sector bank's net interest margin for the June quarter was 7.24%, down 12 basis points on quarter. The bank's net interest margin contracted due to the deployment of surplus liquidity into the Reserve Bank of India's Standing Deposit Facility and an increase in its cost of funds.

 

The lender's gross non-performing asset ratio fell to 2.42% at the end of June from 2.60% a quarter ago. The net non-performing asset ratio fell to 0.71% at the end of June from 0.72% a quarter ago. Its provision coverage ratio was stable at 71.02% and including technical write-offs it was 86.96%. The small finance bank reported net slippages at 1.43% in the reporting quarter, the second lowest in the June quarter over the last five years.

 

The bank reported disbursements of INR 67.84 billion in the quarter, up 93% on year. The bank's gross advances grew 27% on year to INR 476.41 billion at the end of June, while deposits increased 10% on year to INR 489.76 billion. The bank said its gross advances were supported by robust disbursements across verticals. So far, the lender's foreign currency non-resident (bank) deposits have crossed $42 million, the bank said.

 

Shares of the bank fell after the earnings were announced and closed down 5.5% on the National Stock Exchange at INR 74.63.  End

Edited by Pankaj Aher

 

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