Equitas SFB FY26 update: advances hit ₹46,183 crore

What the latest update signals

Equitas Small Finance Bank Limited released a provisional business update for the quarter and financial year ended March 31, 2026, showing strong momentum in lending and a steady deposit base. The headline number was gross advances of ₹46,183 crore, supported by record quarterly disbursements and better collection efficiency in the microfinance portfolio, as per the update note. At the same time, other disclosures in the provided material show that the bank has also dealt with microfinance contraction in a different quarter, alongside one-time provisioning and a quarterly loss. Taken together, the numbers point to a loan book that is growing overall but changing in composition, with greater reliance on secured and non-microfinance segments.

FY26 quarter and year-end: gross advances at ₹46,183 crore

In the provisional update for the quarter and year ended March 31, 2026, Equitas SFB reported gross advances of ₹46,183 crore. This represented 21.58% year-on-year growth. On a sequential basis, the same update said gross advances rose 6.74% quarter-on-quarter.

The lending performance was supported by a sharp rise in disbursements. The bank reported record quarterly disbursements of ₹7,347 crore, up by over 72% compared with the same period last year. The update also noted improved collection efficiency in the microfinance portfolio, which is important because microfinance asset quality and collection trends can change quickly depending on local repayment conditions.

Disbursements and segment performance highlighted by micro loans

The FY26 period update stated that microfinance and micro loans recorded the highest growth, rising 27.18% year-on-year. That segment-level performance sits alongside the broader advances number, indicating that micro-lending contributed meaningfully to growth during the period covered by the provisional update.

Separate highlights included in the input also mention “Gross Advances grew by 22% YoY and 7% QoQ” for a quarter (labelled in the text as Q4FY26). Those percentages broadly align with the bank’s FY ended March 31, 2026 update, but the article relies on the explicit figures given with each disclosure.

Deposit base at ₹46,533 crore, but CASA ratio softens

On liabilities, Equitas SFB reported total deposits of ₹46,533 crore in the provisional update, showing 7.96% year-on-year growth. The CASA ratio declined to 26% from 30% in the previous quarter, as stated in the same update.

A lower CASA ratio generally means a smaller share of low-cost deposits within the overall deposit mix. The update did not provide additional detail in the excerpt on whether this was driven by pricing, customer mix, or competition, but the movement in the ratio is a clear data point investors typically track.

Q1FY26 commentary: slower advances growth and microfinance contraction

The provided material also includes a separate set of numbers discussed for Q1FY26. In that quarter, gross advances were reported at ₹37,610 crore, up 8% year-on-year and flat quarter-on-quarter, with the text linking the muted growth to a contraction in the microfinance loan book. The same Q1FY26 commentary said microfinance contracted by 41%.

Within that quarter’s mix, the bank said its non-microfinance book grew 18% year-on-year, led by 22% growth in small business loans (SBL). It also referenced 50% growth in used car finance and, in another line, a 51% year-on-year increase within SBL for MLAP (mortgage loan against property). The secured portfolio was described as comprising 90% in one place and secured advances as 91% of total advances in another section of the provided text.

One-time provisions and quarterly loss in Q1FY26

The Q1FY26 section includes a notable profitability impact driven by additional provisions. The bank made an additional standard asset provision of ₹185 crore in microfinance (described as a one-time impact) and ₹145 crore as additional NPA provision due to a change in provisioning norms. The same note said these items contributed to a loss of ₹224 crore for the quarter.

The input also states that net income and total operating expenditure (opex) grew 8% and 16% year-on-year in Q1FY26. Pre-provision operating profit (PPoP) for that quarter was reported at ₹316 crore. These figures highlight that the provisioning line, rather than operating performance alone, was central to the reported quarterly loss in that period.

Deposits in Q1FY26: ₹44,379 crore and retail term deposits at ₹19,354 crore

For Q1FY26, total deposits were reported at ₹44,379 crore, up 18% year-on-year and 3% quarter-on-quarter. Retail deposits were described as 73% of overall deposits in the same material. Retail term deposits were stated to have grown 20% year-on-year to ₹19,354 crore.

A separate “Q1 highlights” block in the input includes another set of deposit and margin indicators: overall deposits up 35% year-on-year and 4% quarter-on-quarter, retail term deposits up 47% year-on-year to ₹16,128 crore, a stable CASA ratio of 31%, and NIM of 7.97%. These figures are presented as highlights in the source text but without additional context on the exact period alignment beyond “Q1”.

Market reference points from earlier filings

The provided material also includes older reference points from regulatory filings. One excerpt said gross advances grew 22% year-on-year to ₹21,699 crore as of June 30 (Q1 FY23), with disbursements of ₹3,238 crore versus ₹1,265 crore a year earlier. The same excerpt reported total deposits of ₹20,386 crore, CASA deposits of ₹10,548 crore, and noted the figures were provisional and unaudited, subject to approvals and statutory audit.

It also mentioned the stock closing 0.38% higher at ₹39.35 on the BSE on that day. These datapoints serve as context for how Equitas SFB has historically communicated quarterly business metrics and how the market has reacted in at least one instance.

Key numbers snapshot

Why the mix and provisioning line matters

Across the disclosures in the provided text, a key theme is the shift between microfinance and non-microfinance portfolios and the impact that shift can have on growth and credit costs. The FY ended March 31, 2026 provisional update highlighted improved collection efficiency and strong growth in microfinance and micro loans. But the Q1FY26 commentary described a sharp microfinance contraction and muted overall advances growth.

The provisioning-related loss in Q1FY26 also matters because it ties profitability to regulatory and policy changes, including a “change in provisioning norms” explicitly mentioned in the input. For investors and analysts, such one-time or policy-driven provisions can affect quarterly comparability, even when operating metrics like PPoP are positive.

Conclusion

Equitas SFB’s FY ended March 31, 2026 provisional update showed gross advances of ₹46,183 crore and deposits of ₹46,533 crore, alongside softer CASA at 26%. Other disclosed numbers in the provided material show that in Q1FY26, microfinance contraction and additional provisions were central to a quarterly loss of ₹224 crore, even as non-microfinance lending grew. The next set of audited financial statements and any updated guidance on portfolio mix and provisioning approach will be key checkpoints for tracking how these trends settle.