Equitas Small Finance Bank Limited — PPTs, 31-10-2025: Investor Presentation

Equitas Small Finance Bank reported strong Q2FY26 results. Gross Advances hit ₹39,123 Cr (+9% YoY), driven by Non-MFI book growth of 17% YoY. Total Deposits increased to ₹44,094 Cr (+11% YoY). Profit After Tax (PAT) grew 87% YoY to ₹24 Cr, with Return on Assets (RoA) at 0.18% and Return on Equity (RoE) at 1.65%. Net Interest Margin (NIM) declined to 6.29% due to MFI mix reduction, but Credit Cost improved significantly to 2.16%. Asset quality remains stable with Gross NPA at 2.82% and Net NPA at 0.95%, and MFI overdue payments (DPDs) showing improvement.

Strategic actions include restarting MFI disbursements, expanding secured loans like Small Business Loans (adding 60 branches), and introducing Gold Loans. Digital initiatives like the 'Selfe Loans' app (₹950 Cr disbursed in H1FY26) and Mobile Banking App 2.0 are enhancing customer experience. The bank is also launching 'Elite Lite' and 'Elite Plus' to expand its liability offerings.

Management anticipates a declining cost of funds, moderating cost-to-income in H2FY26, and tapering credit costs by Q4FY26. They project MFI profitability to normalize by Q4FY26, aiming for an exit RoA of about 1%. The bank targets mid-teen advances growth for FY26, largely from secured portfolios, with aspirations for 20% growth beyond FY26.