CONNECT WITH US
Fintech

Fintech

Equitas SFB targets 19% loan growth over FY26-28 as secured lending drives expansion

ET BFSI Fintech logo

Published on

Add as a preferred source on Google
Equitas SFB targets 19% loan growth over FY26-28 as secured lending drives expansion

Equitas SFB targets 19% loan growth over FY26-28 as secured lending drives expansion

The unsecured portfolio, primarily comprising microfinance loans, remains stable at around 12% of advances, with the bank aiming to keep its share below 15% in the medium term

Vehicle finance and small business loans grew 16% each, while housing finance and MSE finance expanded 27% and 38%, respectively.

Deposits grew 19% year-on-year to Rs 52,500 crore, bringing the credit-deposit ratio down to 89.1%.

NIM contracted 55 basis points sequentially to 6.69%, with management expecting an 18-20 basis point recovery by Q4FY27.

GNPA declined to 2.29%, while management raised FY27 RoA guidance to 1.35% from 1.2%.

Equitas Small Finance Bank expects its loan book to grow at a compound annual growth rate (CAGR) of around 19% over FY26-28, driven by sustained traction in vehicle finance, small business loans and housing finance, even as its microfinance portfolio stabilises. Advances grew 29% year-on-year to Rs 46,800 crore in the second quarter of FY27, with non-microfinance disbursements rising 31%. Small business loans, including housing finance, and vehicle finance together account for around 75% of the bank's loan book, providing a diversified secured lending base. The unsecured portfolio, primarily comprising microfinance loans, remains stable at around 12% of advances, with the bank aiming to keep its share below 15% in the medium term, according to Motilal Oswal Financial Services. Advt

Vehicle finance and small business loan portfolios grew 16% year-on-year each in the September quarter, while housing finance and micro, small and enterprise ( MSE ) finance expanded 27% and 38%, respectively.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.