Equitas Small Finance Bank reported a big uptick in net profit for the quarter ended March 2026 (Q4FY26) at ₹213 crore compared to ₹42 crore in profit that it made in the same quarter last year as business levels surged.
The profit grew 136 per cent sequentially. Net profit for the full fiscal FY26 came in at ₹103 crore compared to ₹147 crore.
While gross advances grew 22 per cent y-o-y, the growth was led by a 180 per cent rise in gold loan over the previous year, 21 per cent growth in housing finance, 24 per cent in MSE loans. Equitas gold loan portfolio has crossed ₹850 crore during the quarter, the company said. There was highest ever overall disbursements at ₹7,347 crore in Q4FY26, a growth of 72 per cent y-o-y.
Overall deposits registered a growth of 8 per cent y-o-y. Cost of Funds reduced by 19 bps to 6.94 per cent in Q4FY26.
The NIM for the quarter stood at 7.29 per cent and has significantly improved by 57 bps q-o-q, majorly contributed by interest income on advances and reduced cost of funds, PN Vasudevan, MD and CEO, Equitas Small Finance Bank, told businessline. Asset quality improved as GNPA reduced by 13 bps q-o-q at 2.49 per cent in Q4FY26. NNPA reduced by 20 bps q-o-q to 0.68 per cent in Q4FY26.
“Our growth has been broad-based across all advances. Microfinance is now down to just 10 per cent of our portfolio now and the rest is now secured, giving us the confidence to accelerate on advances,” Vasudevan said. We do not see much of a stress in our portfolio due to the West Asia war and are watching out for any second or third order impact in coming quarters, he added.
Asset quality improved sequentially. Gross NPA (GNPA) reduced by 13 bps q-o-q at 2.49 per cent in Q4FY26. Net NPA (NNPA) reduced by 20 bps q-o-q to 0.68 per cent in the quarter.
Speaking about digitisation initiatives, Vasudevan said that they have been running a few AI projects internally, and the one in the area of outbound collection calls is beginning to show good traction.
Published on April 30, 2026