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Prolonged MFI stress
View Risks →Equitas Small Finance Bank Limited — Q1 FY26
Equitas Small Finance Bank reported a net loss of ₹224 crore for Q1 FY26, driven by aggressive upfront provisioning of ₹185 crore for microfinance standard assets and ₹112 crore for strengthening PCR on the non-MFI book.
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Equitas Small Finance Bank reported a net loss of ₹224 crore for Q1 FY26, driven by aggressive upfront provisioning of ₹185 crore for microfinance standard assets and ₹112 crore for strengthening PCR on the non-MFI book. Revenue from operations was not explicitly stated, but NII stood at ₹786 crore and other income at ₹286 crore. The MFI portfolio contracted 41% YoY to ₹3,537 crore, while secured advances grew 18% YoY, now constituting 90% of the book. Management guided for full-year advance growth of 15-16% and expects credit costs to taper by Q4 FY26. Key risks include prolonged MFI stress, potential further provisioning tightening, and spillover effects from state-level recovery ordinances.
इक्विटास स्मॉल फाइनेंस बैंक ने पहली तिमाही में ₹224 करोड़ का शुद्ध घाटा दर्ज किया। इसकी वजह माइक्रोफाइनेंस (छोटे कर्ज) के लिए ₹185 करोड़ और दूसरे कर्जों के लिए ₹112 करोड़ का अतिरिक्त प्रावधान (भविष्य के नुकसान के लिए रकम अलग रखना) है। बैंक की ब्याज आय ₹786 करोड़ और दूसरी आय ₹286 करोड़ रही। छोटे कर्ज का पोर्टफोलियो पिछले साल से 41% घटकर ₹3,537 करोड़ रह गया, जबकि सुरक्षित कर्ज (जैसे गाड़ी या घर पर लोन) 18% बढ़ा और अब कुल कर्ज का 90% हिस्सा है। बैंक को इस साल 15-16% कर्ज बढ़ने की उम्मीद है और चौथी तिमाही तक कर्ज का खर्च कम होने का अनुमान है। जोखिमों में छोटे कर्ज का दबाव और सरकारी नियमों का असर शामिल है।
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Gross Advances
₹37,610 crore
+8% YoY
Gross advances grew 8% YoY to ₹37,610 crore, driven by 18% growth in non-MFI book.
Microfinance Portfolio
₹3,537 crore
-41% YoY
MFI portfolio contracted sharply by 41% YoY as the bank reduced exposure amid stress.
Net Interest Margin
6.55%
-135bps YoY
NIM fell to 6.55% from 7.9% a year ago due to MFI contraction and interest reversals.
Gross NPA
2.82%
GNPA stood at 2.82% with provision coverage ratio at 67.03%.
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Guidance and risk preview
Management expects overall advances to grow 15-16% YoY in FY26, with secured book growing 20%+ and MFI degrowth of 15-20%.
Collection efficiency may not normalize until Q3/Q4 FY26, with potential for further credit cost surprises.
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