Gross advances stood at Rs 43,269 crore, registering the growth of 15.86% compared with Rs 37,344 crore posted in the corresponding quarter last year. Micro finance & micro loans fell 3.93% YoY to Rs 5,159 crore while non micro-finance & micro loans jumped 19.19% YoY to Rs 38,110 crore in Q3 FY26.

Early-stage delinquencies showed a meaningful improvement during the quarter. Collection efficiency in the 1-90 DPD (days past due) bucket strengthened, with X-bucket ratio rising from 87.73% in October 2025 to 90.61% in December 2025, indicating better on-time collections. Correspondingly, 1–90 DPD outstanding reduced steadily from Rs 150 crore in October 2025 to Rs 106 crore in December 2025.

As a result, the 1–90 DPD ratio improved sharply, declining from 4.34% in October 2025 to 2.77% in December 2025, indicating a reduction in early stress within portfolio.

In the Microfinance & Micro Loans, asset quality trends were even stronger. X-bucket collection efficiency improved to 98.99% in Q3 FY26 from 98.17% in Q3 FY25. On monthly basis, collections strengthened from 98.69% in October 2025 and remained stable at 99.12% through November and December 2025, underscoring sustained repayment discipline.

During the quarter, the company completed two transactions involving the sale of non performing assets (NPAs) to Asset Reconstruction Companies (ARCs). The bank sold NPA assets worth approximately Rs 55 crore to an ARC and also divested a technically written-off asset pool amounting to Rs 294 crore to an another ARC.

Equitas Small Finance Bank is one of the largest small finance banks in India. The bank posted a profit after tax (PAT) of Rs 24 crore in Q2 FY26, up 87% from Rs 13 crore posted in Q2 FY25.. Net interest income fell 4% YoY to Rs 774 crore, compared with Rs 802 crore in Q2 FY25.