Chennai, July 29: The Board of Directors of Equitas Small Finance Bank Limited, at its meeting held, approved the unaudited financial results for the quarter ended June 30, 2026. The Bank delivered a strong turnaround in profitability, reporting a Profit After Tax of INR184 crore in Q1FY27, compared with a loss of INR 224 crore in Q1FY26.
The Bank’s Return on Assets and Return on Equity stood at 1.18 percentage and 11.76percentage, respectively, during the quarter. Gross advances grew 27percentage year-on-year and 3% quarter-on-quarter, supported by robust disbursements across business segments. Overall disbursements stood at ₹6,784 crore, registering a 93% YoY growth.
The Bank’s deposit base grew 10percentageYoY and 5percentage QoQ, while the CASA ratio stood at 25percentage. The Non-MFI book expanded 22% YoY, led by 24percentage growth in Housing Finance, 28percentage growth in Micro and Small Enterprises , and 179% growth in Gold Loans.
Small Business Loans , the Bank’s flagship product, grew 15% YoY, with Business Loans within the SBL portfolio growing 32% YoY and contributing 34% to the overall SBL portfolio. Used Car and Used Commercial Vehicle advances also registered strong growth of 30% YoY and 25% YoY, respectively.
Net Interest Margin stood at 7.24%, marginally lower by around 12 basis points QoQ, while the Cost to Income ratio stood at 68.38%, improving from 70.62% in Q1FY26. Cost of Funds increased marginally to 7.05% from 6.94% in Q4FY26.
Net income grew 19% YoY and 3% QoQ, while total operating expenses increased 16% YoY and 5% QoQ. The Bank’s net worth stood at ₹6,367 crore as of June 30, 2026. Total Capital to Risk-Weighted Assets Ratio stood at 19.44%, comprising Tier I capital of 16.01% and Tier II capital of 3.43%.
Asset quality continued to remain stable, with Gross Non-Performing Assets improving to 2.36% in Q1FY27 from 2.49% in Q4FY26. Including the securitisation book, GNPA stood at 2.31%. Net NPA increased marginally to 0.70% from 0.68% in the previous quarter. The Provision Coverage Ratio remained stable at 71.02%, and stood at 86.96% including technical write-offs.
Net slippages stood at 1.43% in Q1FY27, marking the second-lowest level recorded in the first quarter over the past five years. Credit cost declined significantly to 1.37% from 6.48% in Q1FY26, reflecting a substantial improvement in asset quality and provisioning trends.
On the liquidity front, the Bank maintained a strong position, with its Liquidity Coverage Ratio at 178.46% as of June 30, 2026. Its Certificate of Deposit programme carries the highest A1+ rating from India Ratings, CareEdge Ratings and CRISIL. Income from investments, including mark-to-market gains and dividends, stood at ₹31 crore during the quarter.
The Bank’s Q1FY27 performance reflects strong business growth, improved profitability, resilient asset quality and a significant reduction in credit costs, positioning Equitas Small Finance Bank for continued growth while maintaining a focus on sustainable and responsible lending.