Equitas Small Finance Bank Limited has announced its business update for the quarter ending December 31, 2024, reporting a robust 25.79% year-on-year (YoY) growth in total deposits, reaching ₹40,738 crore compared to ₹32,385 crore as of December 31, 2023. On a quarter-on-quarter (QoQ) basis, total deposits rose by 2.21% from ₹39,859 crore recorded in the previous quarter.
Key Highlights for Q3FY25:
- Deposits and Advances
- CASA deposits stood at ₹11,668 crore, reflecting a YoY growth of 9.79%. However, the CASA ratio dropped to 29% from 33% in the same period last year, indicating a shift in deposit composition.
- Total gross advances grew by 13.94% YoY to ₹37,345 crore, driven by a 19.67% growth in non-group loans, which now form 86% of the total advances.
- The microfinance portfolio saw a deliberate slowdown, declining by 11.33% YoY, as part of the bank’s strategy to address stress in this segment.
- Capital and Fundraising
- The bank successfully raised ₹500 crore through Tier II Bonds in December 2024, enhancing its capital adequacy ratio to over 20%.
- Operational Metrics
- The cost of funds decreased marginally to 7.49% compared to 7.50% in Q2FY25.
- Collection efficiencies for microfinance remained stable in Q3FY25, with an expected improvement in the fourth quarter following industry-wide initiatives to tighten lending discipline.
Management Commentary:
The bank highlighted early signs of stability in its microfinance portfolio and expressed optimism about improved collection efficiencies in Q4FY25. With a continued focus on non-microfinance portfolios, the bank has strengthened its position in the lending market.
The figures shared are provisional and unaudited, subject to review and approval by the Audit Committee, Board of Directors, and statutory auditors.
Equitas Small Finance Bank continues to demonstrate steady growth while navigating challenges in its microfinance segment, supported by a strong capital base and strategic operational decisions.
