Equitas Small Finance Bank Limited — PPTs, 08-08-2025: Investor Presentation

**Financial Highlights:**

The bank reported a Loss of Rs. 224 Cr for the quarter, primarily due to one-time additional provisions from revised norms. Net Interest Margin (NIM) stood at 6.55%. Gross Advances grew 8% YoY to Rs. 37,610 Cr, with the Non-Microfinance book expanding 18% YoY. Total Deposits increased 18% YoY to Rs. 44,379 Cr. Asset quality improved QoQ, with GNPA at 2.82% and NNPA at 0.95%.

**Strategic Initiatives & Growth Drivers:**

The bank is cautiously restarting Microfinance disbursements with enhanced collection strategies and 100% CGFMU coverage. Focus is shifting to Secured Loans, with 50 new branches opened and a significant increase in frontline sales executives. MLAP norms were tightened for smaller loans. New FCNR deposits generated over USD 3 million, enhancing the "Liability 2.0" strategy to optimize funding costs.

**Business Developments:**

The "Selfe Loans" app has generated over 40,000 leads, leading to Rs. 437 Cr in disbursements for the quarter. Tech-led initiatives like "Insta Banking" are digitizing customer service, while the new Mobile Banking App 2.0 enhances user experience with features like UPI and face recognition.

**Market Position & Competitive Advantage:**

The bank exhibits strong liquidity with an LCR of 209.5% and robust capital adequacy (CRAR 20.48%). Retail deposits form 73% of the total, with 95% of bulk Term Deposits in non-callable mode, indicating a stable funding base.

**Investor Implications:**

Management anticipates Microfinance stress will normalize by Q4FY26 and targets mid-teen overall advances growth, expecting profitability for the year. Recent capital raises (Tier 2 and planned Tier 1 equity) position the bank for positive growth potential.