Comapny Update : Equitas Small Finance Bank Ltd by Motilal Oswal Financial Services Ltd
Healthy business growth (in line with MOFSLe); collection efficiency trending better
Equitas Small Finance Bank (EQUITAS) has released its business update for 4QFY26. Following are the key highlights:
* EQUITAS reported healthy growth of 21.6% YoY/ 6.7% QoQ in gross advances to INR461.8b (in line with MOFSLe for advances growth of 16.9% YoY/6.2% QoQ).
* MFI portfolio grew by 11.6% QoQ (up 27.2% YoY), in line with our expectation of faster MFI growth, while the non-MFI portfolio continued to grow at a steady pace of 20.8% YoY/6.1% QoQ in 4QFY26. As a result, MFI share increased to 12.5% vs 11.9% in 3QFY26.
* On the liability front, total deposits grew by 6.6% QoQ (up 8% YoY) to INR465.3b. CASA deposits declined 5.3% QoQ (up 1.7% YoY). As a result, CASA ratio declined to 26% vs 30% in 3QFY26 (in line with MOFSLe for deposits growth of 7% QoQ/8.4% YoY). Meanwhile, CD ratio increased to 93.7% vs 92.9% in 3QFY26.
* Overall, cost of funds declined to 6.93% (vs 7.13% in 3QFY26).
* Collection efficiency (CE) in MFI stood steady at 99.7% in 4QFY26, vs 99.3% in 3QFY26, and improved for both Karnataka as well as Tamil Nadu.
* X-bucket collection efficiency improved to 92.3% in Mar’26 vs 90.6% in Dec’25.
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