Q2 Business: CSB Bank, Equitas SFB, and ESAF SFB Post Double-Digit Loan Growth
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Providing an early pulse check on credit demand and liability mobilization across regional and retail lending franchises, three prominent private and small finance lenders—CSB Bank, Equitas Small Finance Bank, and ESAF Small Finance Bank—released their operational business scorecards for the second quarter ended September 30, 2026. Unveiled on Friday, October 2, during a nationwide Gandhi Jayanti stock exchange market holiday, the quarterly disclosures showcased broad-based resilience in retail consumption and priority sector borrowing, marked by gross advance expansions ranging between 22 percent and 30 percent year-on-year. With equity bourses set to resume regular trading on Monday, October 5, 2026, market participants and institutional desks are closely assessing these credit updates, weighing robust loan book expansions against shifting Current Account Savings Account (CASA) ratios and changing funding costs.
CSB Bank: Gold Loan Book Jumps 36% to ₹22,301 Crore as Total Advances Rise 22%
Kerala-headquartered private sector lender CSB Bank delivered an aggressive expansion across its asset and deposit bases, led predominantly by its core gold loan portfolio:
18% Surge in Deposit Accretion: Total deposits rose by 18 percent year-on-year to ₹46,889 crore in the September quarter, up from ₹39,651 crore reported during the corresponding quarter of the previous financial year.
Stable CASA Base: The bank's low-cost CASA deposits expanded by 6 percent to ₹8,889 crore, compared to ₹8,394 crore logged in the year-ago period.
Strong 22% Credit Growth: Gross advances expanded 22 percent YoY to reach ₹42,373 crore, advancing significantly from ₹34,712 crore in Q2 of the previous fiscal.
Explosive Gold-Backed Lending: Demonstrating strong secured credit demand, advances against gold and gold jewelry surged by 36 percent to ₹22,301 crore, up from ₹16,456 crore a year ago, solidifying gold loans as a primary driver of the bank's asset book.
Equitas SFB: Gross Advances Top ₹50,690 Crore While Cost of Funds Eases to 7.12%
Chennai-based Equitas Small Finance Bank demonstrated robust wholesale and retail credit disbursements, though its low-cost liability share faced minor contraction:
Gross Advances Cross ₹50,000 Crore: Total gross advances jumped by 29.58 percent year-on-year to ₹50,694 crore, highlighting strong disbursement momentum across small business and vehicle finance segments.
19% Deposit Expansion: Total customer deposits climbed 19.03 percent to ₹52,483 crore, maintaining a balanced credit-to-deposit profile.
CASA Contraction and Ratio Dilution: Low-cost CASA deposits slipped marginally by 1.04 percent YoY to ₹13,480 crore, leading to a dilution in the bank's CASA ratio to 26 percent, down from 31 percent in the year-ago period.
Improving Cost of Borrowing: On the liabilities side, the bank's Cost of Funds improved to 7.12 percent, softening from 7.35 percent logged in the same quarter last year, reflecting disciplined liability repricing.
ESAF SFB: Balanced Double-Digit Trajectory With 25% Advance and 24% Deposit Growth
Micro-banking specialist ESAF Small Finance Bank registered consistent quarter-on-quarter and annual improvements across both sides of its balance sheet:
Year-on-Year Deposit Jump of 24%: Aggregate customer deposits rose by 24.34 percent YoY and 5.73 percent sequentially to stand at ₹28,466 crore at the close of the September quarter.
Gross Advances Touch ₹23,931 Crore: The bank's gross loan book advanced by 25.05 percent YoY and 3.08 percent QoQ, settling at ₹23,931 crore.
Solid 10% CASA Accretion: Countering broader industry compression, ESAF SFB expanded its CASA deposits by 9.91 percent YoY and 5.53 percent QoQ to ₹6,645 crore, maintaining a healthy cushion of low-cost funds to support ongoing branch expansions.
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