According to reports from CNBC TV18, Equitas Small Finance Bank's board will meet on September 16, 2026, to consider raising capital through the issuance of lower Tier II bonds in the form of non-convertible debentures. The proposed bonds will be unsecured, subordinated, transferable, redeemable and fully paid-up, as announced in a regulatory filing. The issue will be undertaken through private placement and will be subject to regulatory approvals, as may be required.
As reported by CNBC TV18, the bank is seeking shareholder approval at its 10th Annual General Meeting (AGM) on September 9, 2026, to raise up to ₹500 crore through rated, listed, unsecured, subordinated and redeemable non-convertible debentures, bonds or other debt securities. On September 8, 2026, CARE Ratings reaffirmed the bank's long-term issuer rating at 'CARE AA-; Stable' and reaffirmed the same rating for its existing Lower Tier II bond programmes totaling ₹1,000 crore. Additionally, India Ratings and Research affirmed the bank's Tier II bonds at 'IND AA-/Stable' and Certificate of Deposits at 'IND A1+'.
According to CNBC TV18, the board had separately approved plans to raise up to ₹1,250 crore through a Qualified Institutions Placement (QIP) and/or other permissible modes. The fundraise could include equity shares or convertible securities such as warrants, in one or more tranches, subject to regulatory and shareholder approvals. The proposed capital raising will form part of the agenda for the September 16 board meeting, with the total fundraising program now reaching ₹1,750 crore comprising both the ₹500 crore debt program and the ₹1,250 crore QIP. The successful execution of the Tier II bond issue will enhance the bank's Capital to Risk-Weighted Assets Ratio (CRAR) from the 20.31% reported in March 2026.
As reported by CNBC TV18, the bank demonstrated a remarkable financial turnaround in Q1FY27, reporting a net profit of ₹183.61 crore compared to a net loss of ₹223.76 crore in Q1FY26. This turnaround was driven by an 18.89% expansion in total operating income, indicating strong underlying core profitability recovery. The bank's Total Capital Adequacy Ratio (CRAR) is maintained at an adequate level of 20.31% as of March 31, 2026, providing a solid foundation for the proposed capital raising initiatives.
According to CNBC TV18, shares of Equitas Small Finance Bank closed 0.22% higher at ₹72.70 on September 9. The stock gained ₹0.16 during the session, reflecting positive market sentiment ahead of the board meeting announcement. The robust turnaround in net profit to ₹183.61 crore in Q1FY27 compared to a net loss of ₹223.76 crore in the prior year period indicates that the underlying core profitability is recovering well, which should ease the pricing terms for the private placement of debt. The bank's dual fundraising strategy of securing stable credit ratings ahead of its AGM has laid a solid foundation for its debt placement, providing the necessary leverage to support its expanding, diversified loan book.
