Chennai, January 5, 2026: Equitas Small Finance Bank (NSE: EQUITASBNK) reported steady business momentum for the quarter ended December 31, 2025, led by strong credit growth, improving collection efficiency in microfinance, and a visible moderation in asset quality stress.
Credit Growth Remains Robust
The bank’s gross advances rose 15.9% year-on-year and 10.6% quarter-on-quarter to ₹43,269 crore, supported by healthy disbursements of ₹6,557 crore during the quarter, up 22% sequentially and 28% annually.- Non-microfinance loans expanded 19.2% YoY to ₹38,110 crore.
- Microfinance and micro loans stood at ₹5,159 crore, reflecting a sharp sequential rebound.
Deposits and Funding Profile
Total deposits increased 7.2% YoY to ₹43,668 crore, while the CASA base grew 10.6% annually to ₹12,886 crore. The CASA ratio remained stable at 30%, indicating consistency in low-cost deposit mobilisation.The cost of funds declined to 7.13%, continuing its downward trajectory and offering support to margins.
Improving Collection and Asset Quality Indicators
Microfinance portfolio metrics showed sustained improvement during the quarter:- 1–90 days past due reduced steadily to 2.77% in December, from 8.45% in April.
- X-bucket collection efficiency remained strong at 98.99% in Q3FY26, with Tamil Nadu and Karnataka both showing sequential improvement.
- Fresh overdue formation in micro loans moderated sharply, with the principal outstanding of fresh OD accounts falling to ₹19.6 crore in December.
Balance Sheet Mix and Risk Actions
As of December-end, secured loans accounted for 88% of advances, rising to 91% after excluding direct assignment exposures. During the quarter, the bank also completed two transactions involving the sale of stressed assets, aiding balance sheet clean-up.About the Company
Equitas Small Finance Bank is a Chennai-headquartered small finance bank focused on providing inclusive banking solutions across microfinance, small business lending, vehicle finance, affordable housing, and retail banking. The bank is listed on the NSE and BSE and continues to expand its footprint across urban and semi-urban markets in India.Source:
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