Financial Performance
Equitas Small Finance Bank reported FY26 net profit of ₹103.08 crore, declining from ₹147.05 crore in the previous year, with basic EPS of ₹0.90 (down from ₹1.29). Total income stood at ₹786.78 crore, comprising ₹679.42 crore in interest earned and ₹107.35 crore in other income. The Bank maintained a strong Capital Adequacy Ratio of 20.31% with CET 1 Ratio at 16.68%.
Asset Quality and Balance Sheet
Asset quality improved with gross NPA ratio declining to 2.60% from 2.89% YoY, while net NPA ratio stood at 0.72%. Provision coverage ratio was maintained at 73.03%. Total assets reached ₹6,061.04 crore, with advances net of provisions at ₹4,275.13 crore and deposits at ₹4,653.31 crore. The Bank raised ₹500 crore through Basel II compliant Lower Tier II Bonds during the year.
AGM and Corporate Governance
The Tenth Annual General Meeting is scheduled for September 9, 2026 via video conferencing, with key resolutions including reappointment of MD & CEO Vasudevan P N (with fixed pay of ₹2.80 crore and variable pay of ₹4.20 crore) and ED Balaji Nuthalapadi (with fixed pay of ₹2.54 crore and variable pay of ₹2.54 crore). The Bank also seeks approval for ₹1,250 crore QIP fundraising and ₹500 crore NCD issuance to augment capital. Appointment of Sundaram & Srinivasan as Joint Statutory Auditor is proposed with audit fee fixed at ₹1.23 crore for FY27.
ESOP and Employee Benefits
The Bank disclosed detailed ESOP scheme with 30.85 million options outstanding across 36 grants at weighted average exercise price of ₹70.62. During FY26, the Bank granted 9.52 million options and exercised 1.18 million shares. Fair values ranged from ₹7.10 to ₹38.84 per option using Black-Scholes model. Operating lease commitments totaled ₹604.82 crore with ₹93.18 crore payable within one year for branches and offices.
Regulatory Compliance and CSR
Secretarial audit confirmed compliance with all applicable statutes including Companies Act, SEBI Regulations, and RBI guidelines. CSR expenditure totaled ₹14.67 crore through Equitas Development Initiatives Trust (education, skill development) and Equitas Healthcare Foundation (healthcare services). The Bank maintained 11-director board composition with 9 independent directors and reported various GST and tax penalties totaling approximately ₹30.82 crore.
Key Financial Disclosures
Deferred tax assets stood at ₹319.57 crore primarily from timing differences in provisions and depreciation. Segment reporting showed Treasury revenue of ₹1,003.63 crore (profit ₹266.04 crore) and Retail Banking revenue of ₹6,615.83 crore (loss ₹161.30 crore). Credit ratings were maintained at CARE AA- (Stable) for Lower Tier II Bonds and A1+ for Certificates of Deposit. No dividend was declared for FY26.