The Board of Directors of Equitas Small Finance Bank Limited at its meeting held today, approved the unaudited financial results for the quarter ended September 30, 2022.
Q2FY23 Highlights:
1. Key Highlights for Q2FY23:
Advances:
- Q2FY23 disbursement at Rs. 3,845 Crs, growth of 22 per cent YoY.
- Advances as of Q2FY23 were at Rs. 22,779 Cr, growth of 20 per cent YoY
- Yields stable at 17.10 per cent on a sequential basis.
Liabilities:
- Cost of funds stable at 6.25 per cent, on a YoY basis CoF improved by 56bps.
- CASA deposit grew 28 per cent YoY to Rs. 10,456 Crs. CASA ratio stood at 48 per cent as of September 2022.
- Term Deposits grew 14 per cent YoY to Rs. 11,270 Crs.
- Retail Term Deposits grew 13 per cent YoY to Rs. 7,665 Crs. Retail Term Deposits contribute 68 per cent of total term deposits.
- Elite book consisting of Savings account plus Term Deposits crossed Rs. 10,000 Crs.
- SA mobilised through digital channel crossed Rs. 900 Crs and it contributes to 10 per cent of theSA Portfolio.
Key Ratios:
- Cost to Income at 66.58 per cent in Q2FY23 as compared to 60.60 per cent in Q1FY23 as compared and 66.27 per cent in Q2FY22.
- RoA and RoE for Q2FY23 at 1.60 per cent and 10.57 per cent.
Capital:
- As of Sept 30, 2022 Total CRAR at 23.08 per cent | Tier I at 22.55 per cent and Tier II at 0.53 per cent.
Treasury & Liquidity:
- The Bank’s Certificate of Deposit (CD) program for Rs. 500 crore has the highest rating from CRISIL A1+.
- The Bank maintains ‘surplus’ liquidity in the form of High Quality Liquid Assets (HQLA). Liquidity Coverage Ratio (LCR) as on 30.09.2022 is 202 per cent.
- Profit on sale of Investments for the quarter is Rs. 7.76 crore, and MTM depreciation on Investments for the quarter is Rs. 1.35 crore.
2. Profit & Loss:
- Net Interest Income for Q2FY23 at Rs. 610 Cr as against Rs. 484 Cr in Q2FY22. NIM at 9.00 per cent.
- Pre Provisioning Operating Profit (PPoP) for Q2FY23 at Rs. 242 Cr as against Rs. 199 Cr in Q2FY22.
- PAT for Q2FY23 at Rs. 116 cr as against Rs. 41 Cr in Q2FY22.
3. Asset Quality & Provisions:
- Annualised Credit Cost at 1.62 per cent, excluding one-time impact at 1.35 per cent.
- Non restructured 31-90 pool as of Sept’22 at comfortable levels of 3.49 per cent.
- GNPA at 3.82 per cent in Q2FY23 as compared to 3.95 per cent in Q1FY23 and 4.64 per cent in Q2FY22.
- NNPA at 1.93 per cent in Q2FY23 as compared to 2.07 per cent in Q1FY23 and 2.37 per cent in Q2FY22.
- Provision coverage ratio improves to 50.49 per cent from 48.46 per cent in Q1FY23.
Commenting on the quarterly performance, 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 per cent year on year 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 marginal increase. Our CASA continues to remain in 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”
