Equitas Small Finance Bank Reports Profit Growth Amid Ongoing Operational Challenges

Equitas Small Finance Bank has recently undergone a financial trend adjustment, reflecting a notable shift in its performance metrics. The bank reported a significant growth in profit after tax for the quarter ending September 2025, reaching Rs 24.14 crore, which marks a substantial increase compared to the previous four-quarter average. Additionally, the bank achieved its highest dividend per share at Rs 1.00, with a dividend payout ratio of 77.52%, indicating a commitment to returning value to shareholders.
However, several challenges persist for Equitas. The credit deposit ratio stands at a low 82.44%, which may indicate difficulties in mobilizing deposits effectively. The operating profit to net sales ratio is also concerning, recorded at just 0.72%. Furthermore, the net interest income has reached its lowest at Rs 773.68 crore, and the net non-performing assets have risen to 0.98%, highlighting potential credit quality issues.

In terms of market performance, Equitas has faced a decline in stock returns over various periods, particularly a year-to-date drop of 11.21%, contrasting with a positive return from the Sensex. This performance underscores the need for the bank to address its operational challenges while navigating a competitive banking landscape.