Equitas Small Finance Bank reported FY26 gross advances of ₹46,165 crore and total deposits of ₹46,533 crore. The bank targets over 20% advance growth in FY27 and aims for an exit ROA of 1.5% by Q4FY27.
Equitas Small Finance Bank FY26 Snapshot
Equitas Small Finance Bank reported Gross Advances of ₹46,165 crore and Total Deposits of ₹46,533 crore for the financial year 2026. Reader Takeaway: Strong advance growth and deposit base; geographic concentration remains a watch point. ## What just happened Equitas Small Finance Bank has announced its financial results for the fiscal year 2026. Key figures include Gross Advances reaching ₹46,165 crore and Total Deposits standing at ₹46,533 crore. The bank maintained a Net Interest Margin (NIM) of 6.69% with a cost of funds at 7.22%. The Provision Coverage Ratio was reported at 73.03%. ## Why this matters These results indicate the bank's progress in building its balance sheet and deposit franchise. The growth in advances and deposits, coupled with a healthy NIM, suggests continued operational momentum. The high proportion of secured lending (88%) in its asset portfolio provides a degree of stability. ## The backstory The bank's evolution shows a transition from an NBFC model to a robust banking institution. Its diversified product mix includes significant allocations to Small Business Loans (₹18,559 crore), Vehicle Finance (₹10,627 crore), and Housing Finance (₹5,782 crore) as of FY26. ## What changes now Equitas Small Finance Bank has set ambitious targets for the upcoming fiscal year, FY27. It aims for over 20% growth in advances and targets an exit Return on Assets (ROA) of 1.5% by the fourth quarter of FY27. Full-year FY27 ROA is projected around 1.2%, with a long-term goal of a steady-state ROA of approximately 1.5% by FY31. Investments in the 'Equitas 2.0' digital platform are ongoing to boost efficiency. ## Risks to watch A key risk identified is geographic concentration, with a significant portion of advances (45.29%) and deposits (24.65%) concentrated in Tamil Nadu and Pondicherry. Investors should also monitor credit cost normalization, as management anticipates a marginal increase toward FY27. ## Peer comparison While direct peer comparison is not provided in the filing, Equitas Small Finance Bank operates in a competitive small finance bank landscape. Its focus on a high secured loan book and expanding its deposit base are key differentiators. ## Context metrics (time-bound) As of FY26: * Gross Advances: ₹46,165 Crore * Total Deposits: ₹46,533 Crore * Net Interest Margin (NIM): 6.69% * Secured Portfolio Share: 88% * Cost of Funds: 7.22% * Provision Coverage Ratio: 73.03% ## What to track next Investors will be keen to observe the bank's performance against its FY27 growth and ROA targets. Monitoring the reduction of geographic concentration risk and the impact of digital initiatives on the cost-to-income ratio will also be crucial.
