Motilal Oswal thinks Equitas Small Finance Bank is worth a look right now, recommending a buy with a price target of ₹75.
Even with leadership changes (Mr. Balaji Nuthalapadi, current whole-time director, has been appointed interim CEO, subject to RBI approval), the bank's management is confident about staying on track and performing well.
Equitas loans seen growing 19% annually
Motilal Oswal expects its loans to grow by about 19% each year from FY26 to FY28, driven by its main business areas.
While margins dipped recently due to extra liquidity and funding costs, management sees things improving soon.
Asset quality is getting better too, with lower bad loan ratios and hopes for return on assets to reach around 1.5% by FY28, all pointing toward steady progress ahead.