External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

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Thematic (Sector/Industry)

<ul><li>Q2FY27E provisional updates indicate broad-based strength in credit and deposit growth across lenders, in a relatively weaker quarter.</li><li>SFBs continued to outpace the mid/larger banks, delivering robust business growth. FCNR(B) flows supported deposit mobilisation.</li><li>However, margins are likely to remain under pressure from higher CoF in Q2. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Q2FY27E provisional updates indicate broad-based strength in credit and deposit growth across lenders, in a relatively weaker quarter.SFBs continued to outpace the mid/larger banks, delivering robust business growth. FCNR(B) flows supported deposit mobilisation.However, margins are likely to remain under pressure from higher CoF in Q2. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Flash Note:Banks and NBFCs: Q2FY27E Provisional Update

Equity Bottom-Up

Equitas Small Finance Bank / Equity Bottom-Up

<ul><li>Asset Quality Continues to Improve; Credit Costs Likely to Stay Steady: EQSFB’s asset quality continued its steady improvement trajectory, with GNPA declining to 2.42%, the lowest level over the past couple of years.</li><li>In Q1, credit cost reduced sharply to 1.37% vs 1.1% in Q4; however, adjusting for Rs 29 Cr provision reversal in Q4, underlying credit costs remained broadly stable sequentially.</li><li>Management highlighted that Q1 recorded one of the strongest asset quality performances amongst the seasonally weak Q1s in recent years. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Asset Quality Continues to Improve; Credit Costs Likely to Stay Steady: EQSFB’s asset quality continued its steady improvement trajectory, with GNPA declining to 2.42%, the lowest level over the past couple of years.In Q1, credit cost reduced sharply to 1.37% vs 1.1% in Q4; however, adjusting for Rs 29 Cr provision reversal in Q4, underlying credit costs remained broadly stable sequentially.Management highlighted that Q1 recorded one of the strongest asset quality performances amongst the seasonally weak Q1s in recent years. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Equitas Small Finance Bank Ltd. - RoA Expansion Story Remains on Track...

<ul><li>Asset quality Improvement Unserway; West Asia Conflict Impact Limited: EQSFB’s asset quality trends across other segments, particularly MFI, have been improving over the past few quarters and are expected to remain comfortable going forward.</li><li>While the impact of the West Asia conflict on asset quality remains uncertain, early warning indicators are not expected to reflect any direct stress.</li><li>So far, Apr’26 slippages have not shown signs of deterioration. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Asset quality Improvement Unserway; West Asia Conflict Impact Limited: EQSFB’s asset quality trends across other segments, particularly MFI, have been improving over the past few quarters and are expected to remain comfortable going forward.While the impact of the West Asia conflict on asset quality remains uncertain, early warning indicators are not expected to reflect any direct stress.So far, Apr’26 slippages have not shown signs of deterioration. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Equitas Small Finance Bank Ltd. - Normalising Credit Costs and Lower Cost Ratios...

<ul><li>MFI Stress Peaks; Growth to Accelerate Hereon: The commentary around MFI has been positive, with EQSFB’s seeing green shoots in the MFI portfolio.</li><li>X-bucket CE has improved across geographies. Amongst the core geographies, TN continues to behave well, with CE better than the overall portfolio.</li><li>In KA, the bank has seen improvement in CE during Q2. Additionally, the forward flows to the OD bucket have been arrested and have declined significantly QoQ. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

MFI Stress Peaks; Growth to Accelerate Hereon: The commentary around MFI has been positive, with EQSFB’s seeing green shoots in the MFI portfolio.X-bucket CE has improved across geographies. Amongst the core geographies, TN continues to behave well, with CE better than the overall portfolio.In KA, the bank has seen improvement in CE during Q2. Additionally, the forward flows to the OD bucket have been arrested and have declined significantly QoQ. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Equitas Small Finance Bank Ltd - Margin Tailwinds and Credit Cost Normalisation...

<ul><li>Banks (incl. SFBs) credit growth was marginally in line with our estimates, delivering an 15/5% YoY/QoQ growth in Q4, with a recovery in corporate demand for most larger banks, along with steady demand in the retail segment (particularly LAP, Auto and Gold) and a gradual pick-up in the unsecured segments (improved disbursement momentum driving sequential advances growth).</li><li>While our coverage universe PSU banks (+16/5% YoY/QoQ) continued to deliver strong credit growth, the larger private banks (+13/4% YoY/QoQ) witnessed growth revival during the quarter.</li><li>SFBs delivered strong growth (+25/8% YoY/QoQ) as unsecured segments, particularly MFI, resumed growth, while secured segments growth remained buoyant. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Banks (incl. SFBs) credit growth was marginally in line with our estimates, delivering an 15/5% YoY/QoQ growth in Q4, with a recovery in corporate demand for most larger banks, along with steady demand in the retail segment (particularly LAP, Auto and Gold) and a gradual pick-up in the unsecured segments (improved disbursement momentum driving sequential advances growth).While our coverage universe PSU banks (+16/5% YoY/QoQ) continued to deliver strong credit growth, the larger private banks (+13/4% YoY/QoQ) witnessed growth revival during the quarter.SFBs delivered strong growth (+25/8% YoY/QoQ) as unsecured segments, particularly MFI, resumed growth, while secured segments growth remained buoyant. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Top Conviction Ideas - “Banks, Financial Services and Insurance (BFSI)”

India

Equitas Small Finance Bank Ltd. is a Chennai-based banking institution that evolved from a microfinance company into a full-service small finance bank. It focuses on serving individuals and small businesses often underserved by traditional banking channels, offering products like microfinance, small business loans, vehicle finance, and housing finance. The bank was founded in 2007, and its banking operations commenced in 2016.

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Equitas Small Finance Bank (EQUITASB IN)

Flash Note:Banks and NBFCs: Q2FY27E Provisional Update

Q2FY27E provisional updates indicate broad-based strength in credit and deposit growth across lenders, in a relatively weaker quarter.

Axis Direct

Equitas Small Finance Bank Ltd. - RoA Expansion Story Remains on Track...

EQSFB’s asset quality continued its steady improvement trajectory, with GNPA declining to 2.42%, the lowest level over the past couple of years.

Axis Direct

Equitas Small Finance Bank Ltd. - Normalising Credit Costs and Lower Cost Ratios...

EQSFB’s asset quality trends across other segments, particularly MFI, have been improving over the past few quarters and are expected to remain...

Axis Direct

Equitas Small Finance Bank Ltd - Margin Tailwinds and Credit Cost Normalisation...

MFI Stress Peaks; Growth to Accelerate Hereon: The commentary around MFI has been positive, with EQSFB’s seeing green shoots in the MFI portfolio.

Axis Direct

Top Conviction Ideas - “Banks, Financial Services and Insurance (BFSI)”

While our coverage universe PSU banks (+16/5% YoY/QoQ) continued to deliver strong credit growth, the larger private banks (+13/4% YoY/QoQ)...

Axis Direct

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