Equitas SFB Posts Rs 223.78 Crore Loss in June Quarter

Chennai, August 8, 2025 – Equitas Small Finance Bank Ltd (NSE: EQUITASBNK) posted a net loss of ₹223.78 crore for the quarter ended June 30, 2025. This is compared to a net profit of ₹25.76 crore in Q1FY25, as elevated provisioning impacted earnings.

Key Financial Highlights (₹ in lakh)

• Interest earned during the April–June quarter stood at ₹1,64,886 lakh. Thereby, recording a 9.8% increase compared to the same period last year. Sequentially, the growth was marginal at 0.3%.
• The bank’s other income jumped sharply by 39.7% year-on-year to ₹29,169 lakh. This is up from ₹20,870 lakh in Q1FY25. Compared to the previous quarter, it grew by 29.4%.
• Total income rose to ₹1,94,055 lakh. this is reflecting a healthy 13.5% YoY growth and a 2.7% QoQ rise.
• On the expense side, interest expended shot up by 23.4% YoY to ₹86,312 lakh. This was also up 6% from Q4FY25.
• Operating expenses increased to ₹76,266 lakh, showing a 13.8% rise over Q1FY25 and a modest 2.6% increase compared to the March quarter.
• A significant jump was seen in provisions and contingencies, which surged by 101% YoY to ₹61,225 lakh. This is more than double from ₹30,464 lakh a year ago. Quarter-on-quarter, provisions spiked 137.2%.
• The bank reported a net loss of ₹22,378 lakh for the quarter, reversing the profit of ₹2,576 lakh in Q1FY25 and ₹4,211 lakh in Q4FY25.

Earnings per share stood at ₹ 1.96 against ₹0.23 a year ago.

Asset Quality

• The bank’s Gross Non-Performing Assets (GNPA) stood at ₹1,03,599 lakh in Q1FY26. This is slightly down from ₹1,06,773 lakh in the previous quarter, but up from ₹88,904 lakh in the same quarter last year.
• Net Non-Performing Assets (NNPA) came in at ₹34,159 lakh. This is compared to ₹35,420 lakh in Q4FY25 and ₹26,413 lakh in Q1FY25, reflecting a moderate YoY increase.
• In percentage terms, the Gross NPA ratio remained broadly steady at 2.92%. This is marginally higher than 2.89% in Q4FY25 and 2.73% in Q1FY25.
• The Net NPA ratio held flat at 0.98% for both Q1FY26 and Q4FY25, while showing a slight increase from 0.83% a year ago.

The Capital Adequacy Ratio stood at 20.48%, marginally lower than 20.55% in Q1FY25.

Corporate Updates

• ESOP Exercise: Issued 4,39,926 equity shares to employees during the quarter.
• Additional Provisions: ₹14,850 lakh towards stressed sectors and ₹14,470 lakh in specific asset classes to strengthen coverage.
• Capital Raising: Issued ₹500 crore Tier II subordinated bonds on July 31, 2025.

Equitas Small Finance Bank Stock Performance

Equitas Small Finance Bank shares are trading at ₹56.38. This is a 0.95% dip on August 8, 2025, at 3:19 PM IST. Equitas Small Finance Bank shares have dipped 28% in the last year, 13.14% in the year-to-date, and 10.45% in the previous month.

Equitas Small Finance Bank’s stock opened at ₹56.92 on the day. The stock is hovering in the range of ₹55.59 to ₹57.85 during intraday trade. The stock is currently trading close to its 52-week low of ₹52.52. This is also significantly below the 52-week high of ₹86.90. The bank’s market capitalisation stands at around ₹6,430 crore, with a P/E ratio of 43.75.

REF:https://nsearchives.nseindia.com/corporate/EQUITASBNK_08082025134933_OutcomeofBoardMeetingQ1.pdf

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