Equitas Bank’s net interest income jumps 32.7% to 1,026 crore rupees
Key Facts
Equitas Small Finance Bank reported a 32.7% rise in net interest income to 1,026 crore rupees in the second quarter of fiscal 2027, compared with 773 crore rupees in the year-earlier period, according to figures reported by NDTV Profit. The measure captures the difference between a bank’s interest income and the interest it pays, and its growth shows that this revenue source expanded during the quarter. Operating profit was 402 crore rupees, versus 241 crore rupees in the second quarter of fiscal 2026. The year-on-year comparison shows increases in both net interest income and operating profit, although the available figures do not identify a direct cause for the rise in profitability. An initial version attributed the result to strong operating growth, but sources do not support that interpretation.
The bank’s provisions stood at 115 crore rupees in the second quarter, down from 161 crore rupees in the previous quarter and 207 crore rupees a year earlier, according to NDTV Profit. The comparison shows provisions falling both quarter on quarter and year on year, while operating profit rose from the year-earlier period. On asset quality, the gross non-performing asset ratio declined to 2.29% from 2.42% in the first quarter of fiscal 2027. The net non-performing asset ratio also fell to 0.70% from 0.71% in the previous quarter. This represents a limited improvement in both measures between consecutive quarters; the available figures provide no year-on-year comparison for either.
Net interest margin, meanwhile, was 6.69% in the second quarter, down 55 basis points quarter on quarter, according to Free Press Journal. That decline puts pressure on the margin alongside the 32.7% year-on-year growth in net interest income; the two indicators describe different aspects of interest performance. In the stock market, the bank’s shares fell 19.99% to 57.17 rupees at the close of trading on October 29, 2026. The decline came on a day when the Nifty 50 rose 1.05%, according to NDTV Profit. The bank’s shares thus moved in the opposite direction from the index during the results announcement session, though the published figures alone do not explain the price move.
The bank also saw a management development on October 29, when Chief Executive B.N. Vasudevan announced his resignation amid investor concerns over a perceived conflict of interest, according to a Reuters report. The bank said Vasudevan would remain in his role until his successor takes charge. On the same day, the board reappointed Anil Sharma as a part-time non-executive chairman for three years, according to NDTV Profit. The bank had previously scheduled a call with investors and analysts to discuss financial performance for the second quarter and first half of fiscal 2027. The disclosure reported by Bazar Watch said the call was scheduled for October 29, 2026, at 5:30 p.m. India time.