Equitas Small Finance Bank Posts ₹183.61 Crore Net Profit

Equitas Small Finance Bank Limited has reported a standalone net profit of ₹183.61 crore for the first quarter of the financial year 2026-27. This marks a significant turnaround from the net loss of ₹223.76 crore recorded in the quarter ended 30 June 2025.

The bank's total standalone income for the quarter stood at ₹2,215.50 crore, up from ₹1,940.55 crore in the year-ago period. Interest earned by the bank rose to ₹1,960.40 crore in Q1 FY27, compared to ₹1,648.86 crore in Q1 FY26.

The bank's total expenses for the quarter ended 30 June 2026 were ₹1,810.77 crore. Provisions (other than tax) and contingencies amounted to ₹160.66 crore during the quarter.

As of 30 June 2026, the bank's Gross Non-Performing Assets (NPAs) were reported at ₹1,100.39 crore, with Net NPAs at ₹318.94 crore. The percentage of Gross NPA to Gross Advances was 2.42%, and Net NPA to Net Advances stood at 0.71%.

The Capital Adequacy Ratio (Basel-II) was 19.44% for the quarter. Earnings per share (basic and diluted) were ₹1.61 for the quarter ended 30 June 2026, improving from a negative ₹1.96 in the year-ago period.

The bank confirmed that issue proceeds from Non-Convertible Debentures (NCDs) totalling ₹1,000 crore have been fully utilised for their intended purpose, with no material deviation from the offer document.

The Board of Directors' meeting commenced at 11:00 hours and concluded at 14:45 hours on 28 July 2026.

The significant turnaround in the bank's net profit is a positive sign for the company. The increase in total income and interest earned also indicates a strong financial performance. However, the bank still needs to focus on reducing its NPAs and improving its asset quality.

The bank's financial performance is likely to have a positive impact on its shareholders and investors. The improvement in earnings per share is also a good sign for the company's future prospects.

Overall, Equitas Small Finance Bank's financial performance for the first quarter of the financial year 2026-27 is a significant improvement from the previous year. The bank's ability to turn around its net profit and increase its total income is a positive sign for the company's future growth and development.

The bank's focus on reducing its NPAs and improving its asset quality will be crucial in maintaining its financial stability and growth. The company's ability to utilise its issue proceeds from NCDs for their intended purpose also demonstrates its commitment to transparency and accountability.

In conclusion, Equitas Small Finance Bank's financial performance for the first quarter of the financial year 2026-27 is a significant improvement from the previous year. The bank's turnaround in net profit, increase in total income, and improvement in earnings per share are all positive signs for the company's future growth and development.