Equitas Small Finance Bank has reported its highest ever quarterly profit after tax (PAT) of ₹213 crore for the fourth quarter of the fiscal year 2026, marking a substantial year-on-year growth of 406%. For the entire fiscal year, the bank’s PAT stood at ₹103 crore.
The bank’s gross advances saw a notable increase of 22% year-on-year and 7% quarter-on-quarter, with the non-MFI book growing by 21% year-on-year. This growth was driven by a 21% increase in housing finance, a 24% rise in micro and small enterprises (MSE), and a significant 180% surge in the gold loan portfolio, which crossed ₹850 crore during the quarter.
Deposits also registered a growth of 8% year-on-year, with the current account and savings account (CASA) ratio standing at 26%. The bank’s flagship product, Small Business Loans (SBL), grew by 13% year-on-year, with secured business loan advances contributing 33% to the overall SBL portfolio.
The bank’s net interest margin (NIM) for the quarter improved to 7.29%, up by approximately 57 basis points quarter-on-quarter, primarily due to increased interest income on advances and a reduced cost of funds. The cost of funds decreased by 19 basis points to 6.94% in Q4FY26 from 7.13% in the previous quarter.
Equitas Small Finance Bank’s asset quality showed improvement, with the gross non-performing assets (GNPA) ratio reducing by 13 basis points quarter-on-quarter to 2.49%. The net non-performing assets (NNPA) ratio also declined by 20 basis points to 0.68%.
The bank’s capital adequacy ratio (CRAR) was robust at 20.31%, with Tier I capital at 16.68% and Tier II capital at 3.63%. The liquidity coverage ratio (LCR) was strong at 160.93%.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).