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Equitas Small Finance Bank has reported 59% growth in net profit at Rs 190.04 crore for
the quarter ended March 2023 (Q4FY2023). The bank has posted healthy 28% growth
in net interest income (NII), while the core fee income of the bank also
improved 29% in Q4FY2023. The Net Interest Margin (NIM) of the bank was steady
at 9.10% in Q4FY2023 compared to 9.12% in the corresponding quarter of previous
year.
On business front, the bank as has posted 35%
growth in business with strong 35% surge in loan book. The asset quality of the
bank has further improved in Q4FY2023. The credit to deposit ratio of the bank
remained elevated at 109.8% at end March 2023 from 108.7% at end March 2022.
However, the CASA ratio of the bank has declined to 42.3% at end March 2023
from 52.0% at end March 2022.
Asset quality improves: The bank continued to improve asset quality in
Q4FY2023.
The fresh slippages of loans stood at Rs 191
crore in Q4FY2023 compared with 286 crore in previous quarter and Rs 409 crore
in the corresponding quarter last year.
The recoveries of NPAs stood at Rs 84.79 crore,
upgradations at Rs 125.71 crore and the write-off of loans was at Rs 117.49
crore in Q4FY2023.
Segment wise GNPA
ratio for microfinance stood at 2.31% with PCR of 74.8%, small business loans
at 3.38% with PCR of 50.5%, housing loans at 0.90% with PCR of 32.14%, vehicle
finance at 2.19% with PCR of 63.8%, MSE finance at 6.34% with PCR of 47.6% and
NBFC at 0.4% with PCR of 100%.
The standard restructured loan book of the bank
stood at Rs 58 crore end March 2023.
Provision coverage ratio was steady at 56.90% at
end March 2023 compared to 50.84% a quarter ago and 42.73% a year ago.
The capital adequacy ratio of the bank stood at
23.8% with Tier I ratio at 23.1% at end March 2023.
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Asset Quality
Indicators: Equitas Small Finance Bank
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Mar-23
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Dec-22
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Sep-22
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Jun-22
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Mar-22
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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723.96
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861.36
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870.26
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856.00
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837.18
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-16
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-14
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Net NPA (Rs Crore)
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312.02
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423.44
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430.88
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441.22
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479.48
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-26
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-35
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% Gross NPA
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2.76
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3.63
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3.91
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4.10
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4.24
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-87
|
-148
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% Net NPA
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1.21
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1.82
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1.97
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2.15
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2.47
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-61
|
-126
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% PCR
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56.90
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50.84
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50.49
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48.46
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42.73
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606
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1417
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% CRAR - Basel III
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23.80
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24.28
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23.08
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24.62
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25.16
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-48
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-136
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% CRAR - Tier I -
Basel III
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23.08
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23.74
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22.55
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24.07
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24.53
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-66
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-145
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth: The business of the bank has increased 35% YoY
to Rs 53242 crore end March 2023, driven by 35% surge in advances to Rs 27861
crore. Deposits galloped 34% to Rs 25381 crore at end March 2023.
CASA deposits ratio declines: The CASA deposits of the bank increased 9% YoY
to Rs 10732 crore at end March 2023. The CASA ratio declined to 42.3% at end
March 2023 compared to 52.0% at end March 2022, while declined from 46.2% a
quarter ago.
Strong loan growth: Advances growth was driven by retail loans
rising 43% YoY to Rs 15419 crore at end March 2023, while credit to MSME jumped
27% to Rs 12442 crore at end March 2023.
Investment
book of the bank increased
50% YoY to Rs 6665 crore at end March 2023. The SLE book stood at Rs 6556
crore, while non-SLR book was at Rs 129 crore at end March 2023.
Stable margins: The bank has showed sharp 41 bps YoY increased
in cost of deposits to 6.61%, while yield on advances declined 17 bps YoY to
17.06% in Q4FY2023. NIM was stable YoY at 9.10%.
Branch expansion: The bank has added 21 branches and 2 ATMs in
Q4FY2023, taking overall tally to 922 branches and 349 ATM`s end March 2023.
Book value of the bank stood at Rs 46.4 per share at end March 2023, while
the adjusted book value (net of NNPA and 25% of restructured advances) was Rs
43.6 per share at end March 2023.
Quarterly Performance
NII rises on strong loan growth: Bank has recorded 29% increase in the interest
earned at Rs 1155.73 crore, while interest expenses increased 31% to Rs 448.77
crore in Q4FY2023. NII improved 28% to Rs 706.96 crore in the quarter ended
March 2023.
Healthy growth in the core fee income: Bank has posted strong 29% growth in core fee
income to Rs 102 crore, while the treasury income was at Rs 8 crore. The other
income zoomed 304% to Rs 105 crore, supporting 61% surge in the overall
non-interest income to Rs 238.69 crore in the quarter ended March 2023.
Stable expenses ratio: The operating expenses of the bank increased 34%
to Rs 559.26 crore, as other expenses moved up 23% to Rs 255.34 crore, while employee
expenses jumped 46% to Rs 303.92 crore in Q4FY2023. Cost to income ratio was
nearly stable at 59.1% in Q4FY2023 compared with 59.5% in Q4FY2022, helping the
Operating Profit to increase 36% to Rs 386.39 crore.
Moderate growth in provisions and contingencies:
The bank has showed 2%
rise in provisions to Rs 125.60 crore. The loan loss provisions declined 26% to
Rs 90.61 crore, while investment provisions were at Rs 40 crore. The bank has
written back standard asset provisions Rs 5.34 crore in Q4FY2023.
Effective tax rate rose to 27.1% in Q4FY2023 from 25.6% in Q4FY2022. Net
Profit rose by 59% YoY to Rs 190.04 crore during quarter ended March 2023.
Financial Performance FY2023:
Bank has posted 104% increase in net profit to
Rs 573.60 crore in the year ended March 2023 (FY2023). The net interest income
increased 25% to Rs 2544.73 crore, while non-interest income moved up 25% to Rs
669.59 crore, pushing up net total income by 25% to Rs 3214.32 crore in FY2023.
The operating expenses increased 20% to Rs 2038.31 crore, while provision and
contingencies declined 18% to Rs 407.20 crore, allowing profit before tax to
increase 103% to Rs 768.81 crore in FY2023. The cost-to-income ratio improved
to 63.4% in FY2023 compared to 66.2% in FY2022. An effective tax rate declined
to 25.4% in FY2023 compared to 25.8% in FY2022. The net profit has increased
104% to Rs 573.60 crore in FY2023.
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Equitas Small Finance Bank:
Results
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Particulars
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2303 (3)
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2203 (3)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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1155.73
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895.83
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29
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4161.88
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3459.67
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20
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Interest Expended
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448.77
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343.37
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31
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1617.15
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1421.13
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14
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Net Interest Income
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706.96
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552.46
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28
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2544.73
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2038.54
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25
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Other Income
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238.69
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148.15
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61
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669.59
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537.56
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25
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Net Total Income
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945.65
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700.61
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35
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3214.32
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2576.10
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25
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Operating Expenses
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559.26
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416.70
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34
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2038.31
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1704.15
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20
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Operating Profits
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386.39
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283.91
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36
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1176.01
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871.95
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35
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Provisions &
Contingencies
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125.60
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123.17
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2
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407.20
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493.84
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-18
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Profit Before Tax
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260.79
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160.74
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62
|
768.81
|
378.11
|
103
|
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EO
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0.00
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0.00
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-
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0.00
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0.00
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-
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PBT after EO
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260.79
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160.74
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62
|
768.81
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378.11
|
103
|
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Provision for tax
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70.75
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41.22
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72
|
195.21
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97.38
|
100
|
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PAT
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190.04
|
119.52
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59
|
573.60
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280.73
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104
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EPS*(Rs)
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6.8
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4.3
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5.2
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2.5
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Adj BV (Rs)
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43.6
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29.1
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43.6
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29.1
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* Annualized on current equity of
Rs 1111.17 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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