Why Equitas Small Finance Bank share price is rising

November 3, 2025

India’s banking sector is a key driver of the country’s economic growth, mobilizing capital, expanding access to credit and driving financial inclusion.

Equitas Small Finance Bank, a leading small finance bank in India, is turning heads and making headlines as it continues its upward climb in the stock market, up 6% today.

While the reasons behind this rally are yet to be explored, the growing interest in the bank signals strong investor confidence.

Here, we take a closer look at the factors driving this impressive rise and why the company is in the spotlight.

Second quarter fiscal year 26 results

Shares of Equitas Small Finance Bank are on fire, rising nearly 6% as investors cheer the company’s stellar performance in the second quarter of 2026. The rally is not only driven, but also supported by strong metrics that reflect robust operational growth, improving profitability and solid consumer demand.

In the second quarter of FY26, the bank reported a net interest income of Rs 7,737 mln versus Rs 8,023 mln YoY, showing a slight decline.

The net interest margin (NIM) was 6.29.

Equitas Small Finance Bank reported a net profit of Rs 240 mln for the quarter ended September 2025, up sharply from Rs 129 mln year-on-year and from a loss in the first quarter of F2Y6.

Net non-performing assets (NNPA) remained stable at 0.95% quarter-on-quarter in Q2 FY26 compared to Q1 FY26. Credit costs improved significantly to 2.16% in the second quarter of FY26, compared to 6.48% in the first quarter of FY26 and 3.72% in the second quarter of FY25.

Retail term deposits recorded 11% year-on-year growth to Rs 192.72 billion. The Bank has sold its NPA (secured portfolio) assets for an amount of Rs 2,160 million to an asset reconstruction company.

Overall, the company’s numbers were good, which could be the main reason for the stock price increase.

What now?

Looking ahead, Equitas Small Finance Bank raised Rs 50,000 mln through non-convertible bonds in the first half of FY26, with the proceeds fully deployed as intended.

The bank plans to consolidate its loan origination systems for personal loans and credit cards on one platform. This initiative is expected to improve efficiency and streamline processes.

In addition, a revamped lending system for small business loans (SBL) and affordable housing finance (AHF) has been launched. These systems should improve loan processing times and employee productivity.

The bank uses advanced digital technology to make it easier to attract new customers and manage transactions efficiently. It creates products available exclusively online and targets younger, digitally savvy customers.

The bank has started expanding its acquisition of new clients from MFIs. The NTB (New to Bank) customer mix increased from 10% in Q1 FY26 to 18% in Q2 FY26.

The Bank’s Certificate of Deposits (CD) program has the highest rating of A1+ from India Ratings, CareEdge Ratings & CRISIL.

In conclusion, Equitas Small Finance Bank is undertaking several strategic initiatives to drive growth and improve customer experience.

How Equitas Small Finance Bank Stocks Have Performed Recently

Over the past month, Equitas Small Finance Bank shares rose 5.5%

Over the past year, the share price has fallen by 12.5%.

The stock touched its 52-week high of Rs 75.5 on January 17, 2025 and a 52-week low of Rs 50.05 on September 1, 2025.

About Equitas Small Finance Bank

Equitas Small Finance Bank is a leading small finance bank in India focused on providing banking services primarily to the financially unserved and underserved sections of the population.

It commenced operations in September 2016 after receiving a license from the Reserve Bank of India and has expanded its presence to multiple states in India, with a significant portion of transactions taking place digitally. Equitas Small Finance Bank also offers several digital and co-branded banking products, including partnerships with companies like Niyo and HDFC Bank.

For more information, please consult the Equitas Small Finance bank fact sheet and the most recent quarterly results. You can also compare Equitas Small Finance Bank with similar banks on our website.

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Investors should evaluate the company’s fundamentals, corporate governance and stock valuations as key factors when conducting due diligence before making investment decisions.

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