Mumbai, Aug. 21 -- Concurrently, the agency has reaffirmed the bank's short-term rating at 'CARE A1+'.

CARE Ratings stated that the rating reaffirmation to debt instruments of Equitas Small Finance Bank (Equitas) factors in long track record of operations with diversified asset classes, comfortable capitalisation levels, and an adequate liquidity profile.

Ratings take note of improvement in its deposit franchise, where credit to deposit ratio significantly improved to 78.28% as on 30 June 2025, from 85.08% as on 30 June 2024.

However, ratings strengths are partially offset by regionally concentrated business, and moderate asset quality due to marginal credit profiles of borrowers.

Ratings also consider deterioration in profitability d...