Equitas Small Finance Bank Limited
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Key numbers — 40 extracted
Rs. 37,986
40%
23%
12%
13%
5%
4%
Rs. 7,347
Rs. 4,267
26%
24%
18%
Guidance — 10 items
Shareholders funds
opening
“Guidance With sustained improvement in DPD metrics and disbursements, MFI is expected to move towards normal profitability by Q4FY26 Targeting mid-teen growth in overall advances for FY26, primarily driven by the secured (non-MFI) portfolio, which offers a stable yield of ~15%.”
Shareholders funds
opening
“The cost of funds has commenced a downward trajectory and is anticipated to decline further Cost to Income is expected to moderate in H2FY26 driven by growth in advances and income Credit cost is expected to taper down by Q4FY26, supported by improved collection efficiencies With these positive levers in place, expect to achieve an exit ROA of about 1% in Q4FY26.”
Shareholders funds
opening
“Guidance Actuals MFI DPD (1-90) has reduced to 1.43% in Q4FY26 from 7.82% in Q4FY25 Advances grew 19% YoY (excluding DA) for FY26.”
NIM due to the following factors
opening
“Personal Loan Investments Insurance Forex Cards Trading Remittances 3 in 1, ASBA Credit Card Used Car Loan LAP Over Drafts Home Loan 10 Outlook for FY27 20%+ growth in overall advances for FY27, driven by growth across products Outlook for FY27 Cost to Income is expected to moderate further in H2FY27 driven by Operating leverage with growth in advances.”
NIM due to the following factors
opening
“Q1FY27 will be elevated due to annual increments MFI advances are expected to be maintained at around 10% of the overall advances.”
NIM due to the following factors
opening
“02 03 01 With these positive levers in place, we expect to achieve an exit ROA of about 1.5% in Q4FY27.”
NIM due to the following factors
opening
“For full year FY27, we expect ROA of ~1.2% 04 Q4FY26 credit costs benefited from seasonal factors.”
NIM due to the following factors
opening
“Going forward, we expect credit costs to normalize, with a marginal increase and stabilization towards FY27 11 Key Highlights Assets • Highest ever overall Disbursements at Rs.”
Less
opening
“~₹ 1787 Crs* of Loans Disbursed *1.8 Lakh+ Registrations *3.9 Lakh+ Downloads *FY26 Nos.”
Our Mission
opening
“~99% JLG Loans Spread Across 10 States 500+ Branches Spread Across 12 States & UTs Contd… Housing Finance Vehicle Finance • • Loans are specifically designed to cater to individuals aiming to purchase their first affordable housing property Includes Affordable Housing, LAP and Loans for self construction.”
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Risks & concerns — 4 flagged
The cost of funds has commenced a downward trajectory and is anticipated to decline further Cost to Income is expected to moderate in H2FY26 driven by growth in advances and income Credit cost is expected to taper down by Q4FY26, supported by improved collection efficiencies With these positive levers in place, expect to achieve an exit ROA of about 1% in Q4FY26.
— Shareholders funds
With X-bucket CE at 99.71%, asset quality trends are strengthening, indicating that credit stress has largely stabilized and the worst is behind us.
— X Bucket Collection Efficiency in MFI
• • Increase in interest income from advances driven by strong growth Interest expenses reduced, driven by a decline in the cost of funds from 7.13% in Q3FY26 to 6.94% in Q4FY26 9 Delivering on Liability 2.0 Strategy Liability 2.0 Strategy aims to improve our competitiveness by a) b) c) Reducing the cost of mobilizing deposits through efficiency Narrowing the difference in cost of funds compared to large banks.
— NIM due to the following factors
145 Crs and one time additional stress sector provisioning of ~Rs.
— NIM due to the following factors
Speaking time
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Opening remarks
Disclaimer
The information in this document, including facts and figures, is being provided by Equitas Small Finance Bank Limited (the “Bank”) for informational purposes only and could be subject to change without notice. The information has also not been independently verified. No representation or warranty, express implied, is made as to the accuracy, completeness or fairness of the presentation and the information contained herein and no reliance should be placed on such information. The Bank or any other parties whose name appears herein shall not be liable for any statements made herein or any event or circumstances arising therefrom. This presentation or any part of it or the fact of its, form the basis of, or be relied on in connection with, any contract or commitment therefore. This document has not been and will not be reviewed or approved by any statutory or regulatory authority in India or any other jurisdiction or by any stock exchanges in India or elsewhere This document and the cont
Forward Looking Statements
Certain statements in this document with words or phrases such as “ will”,“ etc. and similar expressions or variation of these expressions or those concerning our future prospects are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements, due to a number of risks or uncertainties associated with the expectations. These risks and uncertainties include, but not limited to, our ability to successfully implement our strategies, change in government policies etc. The Bank may, from time to time, make additional written and oral forward looking statements, including statements contained in the Bank’s filings with the stock exchanges and our reports to shareholders. The Bank does not undertake to update any forward looking statements that may be made from time to time by or on behalf of the Bank. 2 Table of Contents 1. 2. 3. 4. 5. 6. 7. 8. Key Highlights Financial Performance Advances Asset Quality Liabilities & Branch Banking
Gross Advances
Rs. ^46,165 Cr [Rs. 37,986 Cr] SBL - 40%, VF - 23%, MFI - 12%, HF - 13% MSE - 5%, NBFC - 4% Disbursements for Q4FY26: Rs. 7,347 Cr [Rs. 4,267 Cr] SBL - 26%, VF - 24%, MFI - 18%, HF - 8% , MSE - 4%, NBFC - 14%, Others - 5%
Third Party Products
LI & GI Premium- Rs. 71 Cr [Rs. 55 Cr] Mutual Fund AUM- Rs. 426 Cr [Rs. 447 Cr] Cost of Funds for Q4FY26: 6.94% [7.54%] SA – 5.10%, TD – 7.82%
Shareholders funds
CRAR – 20.31% Tier I – 16.68% Tier II –3.63% NIM for Q4FY26: 7.29% [7.13%] RoA: Q4FY26 at 1.46% [0.32%] RoE: Q4FY26 at 14.10% [2.79%] Figures in [] represent Q4FY25 data|*Advance for the purpose of GNPA/NNPA calculation includes Securitization book|^ Gross Advances includes IBPC, Securitization & DA #Including 392 onsite and 4 offsite ATMs 5 Q4FY26 Performance vs. Guidance With sustained improvement in DPD metrics and disbursements, MFI is expected to move towards normal profitability by Q4FY26 Targeting mid-teen growth in overall advances for FY26, primarily driven by the secured (non-MFI) portfolio, which offers a stable yield of ~15%. The cost of funds has commenced a downward trajectory and is anticipated to decline further Cost to Income is expected to moderate in H2FY26 driven by growth in advances and income Credit cost is expected to taper down by Q4FY26, supported by improved collection efficiencies With these positive levers in place, expect to achieve an exit ROA of about 1%
X Bucket Collection Efficiency in MFI
Particulars Overall TamilNadu (TN) Karnataka (KA) Q3FY26 Jan’26 99.34% 99.42% 98.88% 99.62% 99.68% 99.67% Feb’26 99.71% 99.79% 99.76% Mar’26 99.77% 99.82% 99.83% Q4FY26 99.71% 99.77% 99.76% • MFI DPD shows significant improvement QoQ on account of increased collection efficiency. With X-bucket CE at 99.71%, asset quality trends are strengthening, indicating that credit stress has largely stabilized and the worst is behind us. Note: X bucket Collection efficiency shown here is on POS efficiency. Excluding DA: 1-90 DPD for Microfinance is 1.43% with a mix of 10%; 1-90 DPD for Bank is 6.78% 7 Yield on Gross Advances MFI Mix on Avg Basis Overall Yield MFI Yield Non MFI Yield 23.68% 16.60% 15.33% 23.08% 16.33% 15.31% 15.0% 13.1% 22.48% 22.43% 22.60% 15.73% 15.06% 15.44% 14.97% 16.06% 15.28% 10.7% 9.0% 8.7% 9.5% • Overall Yield improved by 7 bps QoQ on account of increased MFI mix 23.21% 15.51% 14.85% Q3FY25 Q4FY25 Q1FY26 Q2FY26 Q3FY26 Q4FY26 Particulars Q1FY26 Q2FY26 Q3FY26 Q4FY26 Overall Y
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