India, Sept. 16 -- Equitas was originally built around lending to underserved customers, particularly through microfinance. That business remains relevant, but management is deliberately reducing its contribution and building a larger secured-lending franchise around small businesses, housing and vehicle finance. Management said MFI advances are expected to remain around 10% of overall advances going forward.

Equitas Small Finance Bank closed at Rs74, with a market capitalization of around Rs8,484 crore. The stock's 52-week range is Rs51.25-Rs83.90, while its P/E is around 16.6x and price-to-book is around 1.35x.

The valuation is therefore no longer at the distressed levels seen during the bank's earlier asset-quality problems, but the...