Equitas Small Finance Bank has delivered robust operational performance in Q3 FY26, with gross advances reaching ₹43,269 crores, marking a significant 10.6% quarter-on-quarter growth and 15.86% year-on-year expansion. The bank's strong lending momentum was driven by exceptional disbursement activity and improved operational metrics across key business segments.

Strong Disbursement Performance Drives Growth

The bank's impressive gross advances growth was supported by robust disbursements totaling ₹6,557 crores during Q3 FY26. This disbursement performance represents a substantial 22% quarter-on-quarter increase and 28% year-on-year growth, demonstrating the bank's ability to capitalize on market opportunities and maintain healthy lending momentum.

Improved Asset Quality and Collection Efficiency

The bank demonstrated significant improvement in asset quality metrics during Q3 FY26. The microfinance and micro loans segment showed remarkable recovery with 1-90 DPD reducing to 2.77% in December from 8.45% in April. Collection efficiency in the X bucket improved to 90.61% in December, reflecting enhanced operational management and customer engagement strategies.

Strategic Asset Management and Portfolio Optimization

During the quarter, the bank completed strategic asset management transactions, including the sale of NPA assets worth ₹55 crores and technical written-off assets of ₹294 crores to Asset Reconstruction Companies. The bank's advances mix as of December 31 shows 88% secured loans and 12% unsecured microfinance and micro loans, indicating a balanced risk profile.

Regional Performance and Credit Quality

The Small Business Loan segment showed notable improvement, particularly in Karnataka, where net slippages decreased significantly to 4.61% in Q3 FY26 from 8.19% in Q2 FY26. Overall net slippages in the SBL segment improved to 1.47% in Q3 FY26, demonstrating enhanced credit risk management across regions.

Equitas Small Finance Bank has informed stock exchanges about the resignation of a senior management personnel, marking a significant leadership change at the financial institution.

Senior Executive Departure

Mr. John Alex, who served as Head - Lead Bank, Govt. Liaison & Social Initiatives, has tendered his resignation due to personal reasons. The resignation was submitted on January 1, 2026, and accepted by the management on January 2, 2026.

Tenure and Achievements

In his resignation letter, Mr. Alex reflected on his extensive tenure with the organization, which began in November 2008. During his service, he played a pivotal role in establishing what he described as "one of the finest social ecosystems in the country for the underprivileged."

Key highlights of his tenure include:

• Leadership Role: Rose to become CEO of Equitas Holdings Ltd
• National Recognition: Received the National CSR Award from the Ministry of Corporate Affairs, Government of India
• International Platform: Spoke at UNO, Vienna and Johns Hopkins University
• Social Impact: Contributed to building the bank's social initiatives framework

Regulatory Compliance

The bank has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was made to both the National Stock Exchange of India Limited and BSE Limited, providing all required details as per SEBI circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Personal Message

Mr. Alex's resignation letter expressed deep gratitude toward the bank's leadership, particularly acknowledging the Managing Director's guidance and vision. He emphasized his commitment to remain available to assist the bank whenever needed, despite stepping away from his formal role.

The resignation will take effect from the close of business hours on April 1, 2026, providing a transition period of three months from the acceptance date.