Equitas posts healthy advances growth of 38%

Equitas Holdings Limited [EHL] announced Unaudited Consolidated resultsfor the quarter ended June 30, 2019:

Highlights:

  • The Board constituted committee has submitted the scheme of arrangement with the stock exchanges and SEBI and we are awaiting regulatory approvals for filing the Scheme of Arrangement with NCLT for their approval for the listing of the Bank.
  • Equitas Small Finance Bank has appointed Mr. Navin Puri as an Independent Director. Mr. Navin Puri recently retired as the Country Head Branch Banking from HDFC Bank. The addition of Mr. Puri will further strengthen the Bank’s board as he comes with immense experience in Banking having spent over 2 decades at HDFC Bank.

Quarterly Highlights (iGAAP):

  1. Key Highlights for Q1FY20:
  • NII grew 35% YoY to Rs. 344cr, NIM*at 8.62%
  • Profit before Provision grew66% to Rs. 126cr, cost to income at 68.62% as compared to 75.89% in Q1FY19
  • PAT grew 75% YoY to Rs. 61.92 cr as compared to Rs. 35.38 cr in Q1FY19
  • Advances grew 38% YoY to Rs. 12,355cr
  • Unsecured lending constituted 30% of total portfolio
  • Deposits* grew by 52% YoY to Rs. 8,670cr. CASA ratio at 26%
  • Customer Deposits as a % of Total Borrowings stands at a healthy 63.30%
  • Capital Adequacy at 21.49% with Tier I ratio at 20.11%

*Deposits excluding CD’s | NIM = Net interest income as a % of avg. income earning assets | Customer Deposits = Deposits excluding CD

  • Profit & Loss:
  • Net Interest Income grew by 35% YoY to Rs. 344 cr, NIM*at 8.62%
  • Liability Fee Income grew 29% YoY to Rs. 17 cr. 
  • Cost to Income ratio at 68.62% as compared to 75.89% in Q1FY19
  • Cost to Assets stood at 6.68%.
  • Provisions and loan loss charges at Rs. 30.57cr. PCR stood at 44.0%. 
  • PAT at Rs. 61.92 cr as compared to Rs. 35.38cr in Q1FY19, a growth of 75%.
  • Return ratios for Q1FY20: ROAat 1.50%. ROEat9.79%
  • Balance Sheet:

Advances:

  • Advances grew 38% YoY to Rs. 12,355 cr
  • Micro Finance grew 29% YoY to Rs. 3,124 cr
  • Small Business Loans (Incl. HF) grew 53% YoY to Rs. 5,025 cr
  • Vehicle Finance grew 28% YoY to Rs. 3,042 cr
  • Working Capital loans for MSEsgrew 324% YoY to Rs. 280 cr
  • Unsecured Business Loans consciously reduced to Rs. 292 cr
  • Financial Institution &Corporate Loans grew 118% YoY to Rs. 555 cr
  • Disbursements grew 5% YoY to Rs. 2,018 cr
  • Liabilities & Branch Banking:
  • Deposits* grew by 52% YoY to Rs. 8,670 cr. CASA ratio at 26%
  • Customer Deposits as a % of Total Borrowings stands at a healthy 63.30%
  • Retail momentum picks up
  • No of Retail Term deposits accounts stood at 1,43,040as compared to 1,06,955in Q4FY19
  • Retail Term deposits#grew by Rs. 619 Cr to Rs. 3,027cr vs. Rs. 2,408cr in Q4FY19
  • No of Retail CASA$ customers stood at 4,95,355as compared to 4,77,053 in Q4FY19
  • CASA stood at Rs. 2,235cr representing 16.32% of total borrowing
  • Bank mobilised over Rs. 42.84cr in Insurance premium. Mutual Fund Assets under management crosses Rs. 113cr.
  • Asset Quality:
  • GNPA at 2.75% as compared to 2.52% in Q4FY19 and 2.84% in Q1FY19
  • NNPA at 1.54% as compared to 1.43% in Q4FY19 and 1.51% in Q1FY19

Results Conference Call Details

We will hold an earnings conference call on 05th August 2019, Monday at 04:00 pm IST to discuss quarterly performance. Transcript of the call will be available later in the Investor Relations section of our website https://www.equitas.in/   

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