Equitas Small Finance Bank announced Q2FY24 results: I. Financial Results: - PAT for the quarter at Rs 198 crore compared to Q2FY23 at Rs 116 crore, showing a growth of 70% YoY. - Gross Advances at Rs 31,229 crore with a YoY growth of 37% and a QoQ growth of 6%. - Quarterly disbursement at Rs 4,961 crore in Q2FY24, with a YoY growth of 29%. - GNPA down to 2.12% from 2.60% in Q1FY24. - ROA and RoE of 2.03% and 14.62% respectively. II. Business Highlights: - Introduction of an InsurTech platform to enhance the digital insurance buying experience for customers. - Addition of 29 banking outlets across Andhra Pradesh, Karnataka, and Telangana, with a focus on asset centers. - Strong disbursement across all product segments, with the Small Business Loans (SBL) recording a YoY disbursement growth of 36%. - The CASA ratio stood at 34%, and Term Deposits grew 82% YoY to reach Rs 20,490 crore. - Retail Term Deposits grew 58% YoY to Rs 12,119 crore, contributing to 59% of total term deposits. III. Key Ratios: - NIM dropped by 33 bps to 8.43%. - Cost to Income stood at 64.37% in Q2FY24, compared to 65.05% in Q1FY24 and 66.58% in Q2FY23. - ROA and RoE for Q1FY24 at 2.03% and 14.62% respectively. - The net worth of the Bank stands at Rs 5,479 crore. - Total CRAR at 21.33%, Tier I at 20.65%, and Tier II at 0.68%. IV. Asset Quality & Provisions: - Annualized gross slippages stable at 3.47% for Q2FY24. - GNPA improved by 170bps YoY to 2.12% in Q2FY24. - NNPA improved by 102bps YoY to 0.91% in Q2FY24. - Additional provisions of Rs 28.04 crore were made during the quarter to strengthen PCR. Commenting on the quarterly performance, P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank said, “This Financial year is witnessing and continue to witness strong credit growth coupled with stable asset quality and a healthy growth in retail term deposits. CASA seems to be an area of concern for the Banking Industry. For Equitas, the interest cost has risen to 7.21% for the quarter. With most of the old deposits at lower rates getting replaced with new deposits at higher rates, we expect a further increase in the interest cost to moderate over the next two quarters. Our Investments in Technology/Digitization continue to progress effectively, the benefits of which should be felt in the upcoming years.” Result PDF
Equitas Small Finance Bank announced Q1FY24 results: Credit Growth continues to remain strong with advance growing at 36% YoY and 6% QoQ to Rs 29,601 crore despite Q1 seasonality The bank registered a strong disbursements growth of 47% YoY to Rs 4,757 crore Deposits grew 36% YoY and 9% QoQ to reach Rs 27,709 crore Q1FY24 saw a 33 bps increase in cost of funds sequentially to 6.94% compared to 6.61% for Q4FY23 NII grew 28% YoY and 5% QoQ, other income grew 50% YoY and 4% QoQ (excluding ARC sale income in Q4FY23) PAT stood at Rs 191 crore for Q1FY24, growth of 97% YoY and 1% QoQ NIM remains healthy at 8.76% Cost to income stood at 65.05% in Q1FY24 as compared to 58.09% in Q4FY23 and 60.60% in Q1FY23. RoA and RoE for Q1FY24 at 2.10% and 14.54% Commenting on the quarterly performance, P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank, said: “The bank has now consistently delivered to a 2%+ ROA and ~15% ROE over the past three quarters back by strong credit growth, continued traction in retail deposits and a favourable credit cycle in urban and rural geographies. We firmly believe over the past 7 years the Bank has created a strong franchise that is stable, scalable, and sustainable and now aspires to convert to a universal bank. Our investments in technology continue to progress well, the impact of which should be felt in the coming few years.” Result PDF