Equitas Small Finance Bank presented its strategic outlook and operational performance at an Analyst and Investor Meet held on June 11, 2026, at Trident BKC in Mumbai. The bank outlined its goal to achieve 20%+ growth in overall advances for FY27, driven by expansion across its diversified product portfolio. Management expects the Return on Assets (ROA) to reach approximately 1.2% for the full year FY27, with an exit ROA of about 1.5% anticipated by Q4FY27.

The presentation highlighted the bank's transition from resilience to momentum, emphasizing its position as a uniquely placed bank serving the semi-formal and informal segments. Equitas SFB reported gross advances of ₹46,165 crore and deposits of ₹46,533 crore for FY26, reflecting a compounded annual growth rate (CAGR) of 23% and 42%, respectively, since FY17. The bank maintains a secured book mix of 88%, backed by property, collateral, gold, or vehicles, which supports portfolio stability.

Asset Quality and Provisions

The bank noted that credit costs in Q1FY26 were impacted by a one-time adjustment as provisioning norms for the secured portfolio were strengthened to meet the Reserve Bank of India's (RBI) universal bank eligibility criteria. This initiative targeted a Provision Coverage Ratio (PCR) above 65% and aimed to keep Net NPAs below 1% at the bank level. Consequently, additional standard asset provisions of ₹185 crore and additional NPA provisions of approximately ₹152 crore, including technical write-offs, were recorded. Going forward, the bank expects credit costs to normalize with marginal increases and stabilization towards FY27.

Business Segments and Performance

Equitas SFB's diversified lending portfolio includes Small Business Loans (SBL), Vehicle Finance (VF), Housing Finance (HF), and Microfinance. The SBL portfolio, the bank's flagship product, grew at a 27% CAGR between FY18 and FY26, reaching gross advances of ₹18,559 crore. The Vehicle Finance portfolio stood at ₹10,627 crore, while Housing Finance reached ₹5,782 crore, demonstrating a 46% CAGR between FY20 and FY26. Microfinance exposure has been strategically reduced to 10% of total advances to mitigate event-risk impacts.

Liability Franchise and Digital Strategy

The bank's deposit franchise grew to ₹46,533 crore in FY26, with retail deposits (Retail TD + CASA) constituting 68% of the total. The Liquidity Coverage Ratio (LCR) as of March 31, 2026, stood at a robust 160.93%. Equitas SFB is also advancing its digital capabilities with the launch of 'Equitas 2.0', a cloud-native mobile banking platform designed to enhance customer experience and digital engagement. The bank aims to reach a digital convergence score of 72% by the end of FY27.

FY27 Outlook

Looking ahead to FY27, the bank projects that MFI advances will be maintained at around 10% of overall advances. The cost to income ratio is expected to moderate in H2FY27 due to operating leverage, although Q1FY27 may see elevated levels due to annual increments. For the longer term, the bank envisions sustaining 20%+ advances growth with a steady-state ROA of approximately 1.5% by FY31.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE063P01018/f7711ac9b76848a6.pdf

Equitas Small Finance Bank Ltd has announced the closure of its trading window for designated persons and their immediate relatives in accordance with its Insider Trading code. The window is closed from June 22, 2026, and will reopen on June 29, 2026, remaining open until June 30, 2026. This measure is intended to regulate, monitor, and report trading by insiders in the bank's securities.

Following this brief reopening, the trading window will shut again from July 01, 2026. It will remain closed until 48 hours after the announcement of the Unaudited Financial Results for the quarter ending June 30, 2026. This restriction ensures compliance with regulatory standards during the period leading up to the financial disclosure.

The disclosure was submitted to the National Stock Exchange of India Limited and BSE Limited. The bank's scrip codes on the BSE are 543243, 976218, and 976979, while it trades under the symbol EQUITASBN on the NSE.

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