Equitas Small Finance Bank has reported strong performance in its latest quarterly results, showcasing significant improvements in key financial metrics. The bank's CASA (Current Account Savings Account) deposits and cost efficiency have shown notable progress, indicating a positive trajectory for the institution.

CASA Growth and Deposit Performance

Equitas Small Finance Bank has demonstrated impressive growth in its CASA deposits:

The bank's CASA ratio improved to 31.00% in Q2, up from 29.00% in the previous quarter and 30.00% in the same period last year. This improvement indicates a strengthening deposit base and potentially lower cost of funds for the bank.

Cost Efficiency and Funding

The bank has also shown improvements in its cost metrics:

The reduction in funding costs from 7.49% in the previous quarter to 7.35% in Q2 suggests improved cost efficiency, which could positively impact the bank's profitability.

Advances and Asset Quality

The bank's gross advances showed positive growth:

The significant increase in disbursements indicates a recovery in lending activity. However, the Micro Finance & Micro Loans segment continued to show a decline, albeit at a slower rate:

The bank has also taken steps to address asset quality concerns:

• Sold NPA assets amounting to approximately ₹216.00 crore to an Asset Reconstruction Company during Q2.
• Improved collection efficiencies, with the 1-90 DPD (Days Past Due) in the MFI & Micro Loan segment showing consistent reduction.

Conclusion

Equitas Small Finance Bank's Q2 results reflect a strong performance in CASA growth and cost management. The improved CASA ratio and reduced funding costs indicate enhanced operational efficiency. While challenges persist in the Micro Finance segment, the overall growth in advances and disbursements suggests a positive outlook. The bank's proactive measures in managing asset quality further underscore its commitment to maintaining a healthy balance sheet.

Investors and stakeholders may view these results as indicative of the bank's resilience and potential for sustainable growth in the coming quarters. However, it will be crucial to monitor the performance of the Micro Finance segment and the bank's strategies to address the challenges in this area.

Equitas Small Finance Bank has announced a significant change in its leadership structure, designating Ms. Smitha Kumar as Senior Management Personnel (SMP) effective October 1, 2025. This move comes as part of the bank's internal restructuring to enhance its management capabilities.

New Role and Responsibilities

Ms. Kumar, who currently serves as the Head of Customer Experience at Equitas Small Finance Bank, will continue in this role while taking on additional responsibilities as an SMP. The bank's decision to elevate her position is a result of changes in its internal reporting structure, reflecting the importance of customer experience in the bank's strategic vision.

Extensive Industry Experience

With over 26 years of rich experience in Service Delivery and Customer Experience across the Banking, Financial Services, and Insurance (BFSI) sector, Ms. Kumar brings a wealth of knowledge to her expanded role. Her expertise spans various aspects of customer-centric banking operations, making her a valuable asset to the bank's senior management team.

Recognition and Achievements

Throughout her career, Ms. Kumar has been recognized for her innovative approach to customer experience. Her initiatives have garnered awards in numerous forums, highlighting her ability to drive transformation in banking services. This track record of success positions her well for her new responsibilities within the bank's leadership.

Impact on Bank Operations

The appointment of Ms. Kumar as an SMP is expected to further strengthen Equitas Small Finance Bank's focus on customer-centric strategies. Her extensive experience and proven track record in transforming customer experiences are likely to play a crucial role in shaping the bank's future initiatives and enhancing its competitive edge in the small finance banking sector.

Regulatory Compliance

In compliance with regulatory requirements, Equitas Small Finance Bank has duly informed the National Stock Exchange of India Limited and BSE Limited about this appointment. The bank has emphasized that this change is part of its ongoing efforts to align its management structure with its strategic goals and to enhance its operational efficiency.

As Equitas Small Finance Bank continues to evolve in the competitive banking landscape, the elevation of Ms. Smitha Kumar to the Senior Management Personnel role underscores the bank's commitment to leveraging experienced leadership to drive customer satisfaction and overall growth.