Equitas Small Finance Bank reported a strong Q2 FY27 business update, with gross advances reaching Rs 50,694 crore, a 29.58% year-on-year increase. The bank saw healthy disbursement activity of Rs 7,461 crore and total deposits rising to Rs 52,483 crore. Additionally, the bank proactively managed its balance sheet by selling Rs 110 crore in NPAs to an Asset Reconstruction Company. Investors should view these figures as provisional ahead of the formal quarterly financial results.
Equitas Small Finance Bank Reports Strong Q2 Growth
Gross Advances hit Rs 50,694 crore; Total Deposits reached Rs 52,483 crore.
Reader Takeaway: Strong double-digit advances growth drives momentum, though CASA ratio dip warrants monitoring as cost of funds remains steady.
What just happened
Equitas Small Finance Bank has released its provisional business update for the quarter ended September 30, 2026. The lender recorded a robust 29.58% year-on-year jump in gross advances, totaling Rs 50,694 crore. Disbursements for the quarter surged by 38.66% compared to the previous year, reaching Rs 7,461 crore.
Why this matters
The steady expansion of the loan book, particularly in the non-micro finance segment which accounts for Rs 44,363 crore, suggests a diversified growth strategy. The bank's proactive approach to asset quality—evidenced by the sale of Rs 110 crore in NPAs to an ARC—signals management's commitment to maintaining a cleaner balance sheet as the portfolio expands.
Deposits and Funding
Total deposits grew 19.03% annually to Rs 52,483 crore. The CASA ratio, a key metric for low-cost funding, stood at 26%, showing a slight improvement over the previous quarter (25%) but lower than the 31% reported in September 2025. The cost of funds for the quarter was reported at 7.12%.
Risks to watch
Investors should note that these figures are provisional and subject to final audit by the Board and Statutory Auditors. Any material variance during the final review could impact market sentiment. Additionally, the CD ratio, which stands at 90.55% (or 80.29% after accounting for refinance borrowings), indicates a high level of loan deployment against deposits.
Context metrics
- Gross Advances: Rs 50,694 crore (+29.58% YoY)
- Disbursements: Rs 7,461 crore (+38.66% YoY)
- Total Deposits: Rs 52,483 crore (+19.03% YoY)
- CASA Ratio: 26%
What to track next
Watch for the upcoming official Q2 financial results, which will provide deeper insights into Net Interest Margins (NIMs), profitability, and final asset quality metrics.