Bank Stock Jumps After RBI Clears Mirae Asset Mutual Fund to Acquire Up to 9.5% Stake

Synopsis: RBI has approved Mirae Asset Mutual Fund to acquire up to a 9.5% stake in Equitas Small Finance Bank, subject to regulatory compliance requirements.

This Small-Cap Stock, engaged in providing banking and financial services, including retail loans, microfinance, vehicle finance, housing loans, deposits, and digital banking solutions to individuals and businesses across India, jumped 2.53 percent after the Reserve Bank of India granted approval to Mirae Asset Mutual Fund for a 19.50 percent stake acquisition in the company.

With a market capitalization of Rs. 7,980.74 crores, the share of Equitas Small Finance Bank Limited has reached an intraday high of Rs. 70.95 per equity share, rising nearly 2.53 percent from its previous day’s close price of Rs. 69.20. Since then, the stock has retreated and is currently trading at Rs. 69.91 per equity share. 

Reason Behind the Surge

Equitas Small Finance Bank has received approval from the Reserve Bank of India (RBI) for Mirae Asset Mutual Fund to acquire an aggregate holding of up to 9.50 percent of the bank’s paid-up share capital or voting rights. 

The approval was communicated to the bank on June 1, 2026, and is valid for one year from the date of approval. The acquisition is subject to compliance with applicable banking, foreign exchange, and securities regulations, as well as other relevant laws and guidelines issued by regulatory authorities.

Future Outlook (FY27)

Equitas Small Finance Bank expects strong growth in FY27, with overall advances projected to increase by more than 20 percent, supported by growth across its lending products. The bank expects its microfinance (MFI) portfolio to remain stable at around 10 percent of total advances, helping maintain a balanced loan mix.

The bank also expects operational efficiency to improve, leading to a lower cost-to-income ratio during the second half of FY27. Credit costs are likely to normalize after the seasonal benefits seen in Q4FY26. Supported by these positive factors, Equitas aims to achieve a return on assets (ROA) of about 1.5 percent by Q4FY27 and around 1.2 percent for the full financial year.

Business Highlights

Equitas Small Finance Bank is one of India’s leading small finance banks with a strong presence across the country. The bank operates in 18 states and Union Territories through a network of 1,060 banking outlets and 396 ATMs, making banking services accessible to a large number of customers.

The bank is supported by 366 business correspondents who help extend financial services to underserved areas. With a workforce of over 28,000 employees, Equitas continues to focus on providing inclusive banking solutions, serving individuals, small businesses, and entrepreneurs while expanding its reach across urban and rural markets.

Company Overview

Equitas Small Finance Bank Limited is an Indian small finance bank headquartered in Chennai, Tamil Nadu. Established in 1993, it focuses on providing inclusive financial services to individuals, small businesses, and underserved communities across India. It became a scheduled commercial bank in 2016 following a Reserve Bank of India (RBI) license.

Recent Quarter Results

Coming to financial highlights, Equitas Small Finance Bank Limited’s Net Interest Income has increased from Rs. 829.42 crore in Q4 FY25 to Rs. 980.12 crore in Q4 FY26, which has grown by 18.17 percent. The net profit has also grown by 405.06 percent from Rs. 42.11 crore in Q4 FY25 to Rs. 212.68 crore in Q4 FY26.

In terms of return ratios, the company’s ROCE and ROE stand at 6.44 percent and 1.69 percent, respectively. Equitas Small Finance Bank Limited has an earnings per share (EPS) of Rs. 0.90, and its debt-to-equity ratio is 8.54x.

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