Equitas Small Finance Bank Limited — Important, 04-04-2025: Updates

Total gross advances for Equitas Small Finance Bank stood at ₹37,986 Cr on March 31, 2025, reflecting a year-on-year increase of 10.63% and a quarter-on-quarter rise of 1.72%. Total deposits reached ₹43,107 Cr, marking a 19.31% increase year-on-year and 5.81% quarter-on-quarter. CASA deposits grew by 7.43% year-on-year to ₹12,410 Cr, maintaining a CASA ratio of 29%.

Asset quality showed some fluctuations, with total gross NPA at 5.91% in Q4FY25, a slight improvement from the previous month. The X bucket collection efficiency for March was robust at 98.36%, indicating a positive trend in microfinance recovery, especially outside Karnataka, though the state showed signs of recovery as well.

Management remains optimistic about maintaining credit costs within normal levels, benefiting from a substantial shift towards secured lending, which now constitutes 88% of total advances. Investors should watch closely for continued improvements in asset quality and collection efficiencies as the bank navigates its growth trajectory.