Equitas Small Finance Bank is a leading Small Finance Bank committed to providing new-age banking solutions to the financially unserved and underserved segments across India. Guided by principles of Fairness and Transparency, the bank empowers individuals from diverse backgrounds with innovative banking experiences driven by TRUST. Established in 2017 and an RBI-licensed Scheduled Commercial Bank, Equitas aims to redefine how banking is envisioned, delivered, and experienced, offering inclusive services to families, senior citizens, NRIs, and businesses.
The bank commenced its banking operations on September 5, 2016, after receiving its license from the Reserve Bank of India (RBI) on June 30, 2016. It officially became a scheduled bank on February 4, 2017. Equitas has successfully evolved from its microfinance origins to become a comprehensive financial services provider, serving millions of customers nationwide.
Prior to obtaining its Small Finance Bank license, Equitas operated as a wholly-owned subsidiary of Equitas Holding Ltd. The holding entity began its journey in 2007 in the microfinance sector and expanded into vehicle and housing finance in 2011, followed by entry into SME and Loan Against Property (LAP) in 2013. Subsequently, Equitas Microfinance Ltd and Equitas Housing Finance Ltd merged with Equitas Small Finance Bank Limited. This amalgamation, approved by the Hon'ble High Court of Judicature at Madras, officially transferred the microfinance and housing finance businesses to the company effective September 2, 2016, leading to its renaming and commencement of banking operations.
As of July 2025, Equitas Small Finance Bank's market capitalization stood at ₹7,179 Crore, reflecting a market volatility of -31.5% in the past year. The bank's financial performance has shown a mixed trend in recent periods.
- Revenue: ₹6,312 Crore
- Profit: ₹147 Crore
- Capital Adequacy Ratio (CAR): 21.7% (as of March 31, 2024), down from 23.8% a year prior.
- Gross NPA Ratio: 2.6% (as of March 31, 2024), an improvement from 2.8% in the same period last year.
- Net NPA Ratio: 1.2% (for FY24).
- Interest Income: Increased by 31.8% year-on-year (YoY).
- Net Interest Income (NII): Grew by 21.0% YoY.
- Net Profit: Increased by 39.3% YoY.
- Net Interest Margins (NIM): Witnessed a slight decline, standing at 7.7% in FY24 compared to 7.8% in FY23.
Headquartered in Chennai, Tamil Nadu, Equitas Small Finance Bank serves its customers through a network of 964 banking outlets spread across 18 states and union territories in India, supported by over 22,000 bankers. The bank has established a strong geographical presence with a strategic focus on key markets.
- States & UTs Presence: 18
- Banking Outlets: 964
- ATMs: 365
- Highest Branch Concentration: Tamil Nadu (335), Maharashtra (152), Karnataka (110).
- Major Business Contribution: Tamil Nadu (Advances 49%, Deposits 28%), followed by Maharashtra (Advances 15%, Deposits 13%) and Karnataka (Advances 12%, Deposits 9%).
Equitas Small Finance Bank operates across several key segments: Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business, with the majority of its revenue generated from the retail banking segment. The bank offers a comprehensive suite of financial services, including:
- Microfinance
- Vehicle Financing
- Home Loans
- Loan Against Property
- Business Banking Solutions
In addition to credit offerings, the bank provides non-credit products such as ATM-cum-debit cards, third-party insurance, mutual fund products, and FASTag issuance, catering effectively to a diverse customer base.
Q1 FY26 Performance:
- Advances: ₹38,034 Crore
- Deposits: ₹44,379 Crore
- Net Slippage: 4.35%
- CASA Ratio: 29%
- Collection Efficiency: Approximately 98% (as of June 30, 2025)
Recent strategic initiatives include adaptations to RBI's revised off-site supervisory arrangements, which mandate smaller banks to submit detailed operational information, including governance, risk management, and business models. The RBI has also introduced a revised framework for on-site supervision of small finance banks, emphasizing proportionate supervision.
The Bank has implemented a robust framework for credit risk management, encompassing guidelines for credit risk assessment, credit rating, credit monitoring, and credit control. A comprehensive risk management system is in place to monitor and mitigate various risks, including credit risk, market risk, operational risk, and liquidity risk.
Equitas Small Finance Bank maintains strong governance structures to ensure strict adherence to regulatory requirements. The bank is continuously working on enhancing its risk management capabilities as it expands its business operations across multiple states, ensuring compliance and operational integrity.
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