The Corner Office - MFI stress nearing peak; estimate RoA to recover sharply over FY27-28

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Equitas Small Finance Bank (Equitas SFB) is pivoting towards a more secure business model.

The bank is focusing on secured lending, with SBL, VF, and Housing forming 90% of the portfolio.

Deposit growth is steady, but the CASA mix has declined to 29%.

The bank is steadily repricing liabilities to lower the overall cost of funds.

Asset quality stress is peaking, but the bank expects a recovery in FY27.

Equitas SFB plans to apply for a Universal Banking License by Mar 26.