Equitas Small Finance Bank Ltd, originally established in 1993, operates as a prominent small finance bank in India, providing retail banking services with a strong emphasis on micro and small enterprises (MSEs) and other underserved sectors.

The bank has seen a robust growth in non-microfinance sectors, especially with a 17% Y-o-Y growth in small business loans and a 43% growth in used car finance, enhancing its portfolio diversification and reducing dependency on volatile MFI sectors.

With a steady increase in capital adequacy at 20.74%, Equitas is well-capitalized to support its expansion plans and maintain stability, illustrated by an 11% growth in year-on-year deposits.

Significant improvements are noted in asset quality, with gross NPAs stable at 2.82% and credit cost declining to 2.16% in Q2 FY26, indicating better financial health post-MFI stress.

Equitas is actively targeting underbanked segments by growing its secured loan book and extending key initiatives in gold loans and affordable housing finance, bolstering its growth trajectory in high-demand areas.