Conference Call with Equitas Small Finance Bank Management and Analysts on Q3FY23 Performance and Outlook. Listen to the full earnings transcript.
Equitas Small Finance Bank announced Q3FY23 results: Q3FY23: Q3FY23 was a strong quarter across key performance indicators delivering sustainable loan and deposit growth, stable margins, improved asset quality. Loan growth – 27% YoY | Deposit growth – 31% YoY. 93 bps improvement in GNPA YoY. Highest ever PAT at Rs 170 crore. Improved return ratios with RoA at 2.21% and RoE at 14.94%. PPoP expanded to 3.62% from 3.52% YoY as productivity improved across product segments. Asset quality continues to improve with DPD buckets normalized with covid impact waning off and restructured book contracting further. 1-90 DPD stands at 7.53% in Q3FY23 as compared to 10.43% in March 2022 and 5.51% in March 2020 (Pre-Covid19). Bank has utilized Rs 36 crore of Covid Restructured Loan (RL) standard provisions during the quarter and continues to hold Rs 60 crore in Standard RL provisions which may be utilized in the following quarters Commenting on the quarterly performance, Mr. P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank said: “The effect of Covid on the bank’s financials has waned. Many initiatives of the Bank to create a stable, sustainable, and scalable bank have started yielding results and the performance of the 3rd quarter reflects the same. Various projects on the digital side are expected to become operational over the next few quarters. As they go live, we expect further improvement in both productivity and efficiency as well as in generating newer business models.” Result PDF
Equitas Small Finance Bank announced Q2FY23 results: PAT for the quarter at Rs 116 crore compared to Q2FY22 PAT of Rs 41 crore Gross Advances as of Q2FY23 was at Rs. 22,779 crore, a growth of 20% YoY Q2FY23 disbursement at Rs. 3,845 crores, growth of 22% YoY RoA & RoE at 1.60% and 10.57% CASA Deposit grew 28% YoY to Rs. 10,456 crores. CASA Ratio stood at 48% as of Sept 2022 GNPA down to 3.82% from 3.95% in Q1FY23, PCR improves to 50.49% from 48.46% sequentially Commenting on the quarterly performance, Mr. P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank said: “Demand for credit continues to remain strong, especially in the informal sector. The 20% YoY growth in advances for the first half is expected to improve further in the seasonally active second half. Quality of portfolio remains a comfort with reducing credit cost. Deposit growth has been satisfactory and we have been able to retain the cost of funds with only a marginal increase. Our CASA continues to remain in its comfort zone and the digital initiatives of the Bank are beginning to yield significant benefits. Overall, the effect of Covid is receding and we expect to be back to our pre-covid levels of growth and profitability going forward” Result PDF