PBT before provision & Write-off at Rs. 146 Cr, growth of 19% YoY
Cumulative COVID provisions of Rs. 144.63 Cr
Moratorium Opt in % at 43% as of July 2020 from 51% as of June 2020
Retail TD at Rs. 4,377 Cr, growth of 96% YoY.
MUMBAI, 10 AUGUST, 2020 (GPN):
Q1FY21 Highlights:
- Key Highlights for Q1FY21:
- Advances^:
o Advances^ as of Q1FY21 was at Rs. 15,573 Cr, Advances^ growth of 27% YoY
o The Bank disbursed Rs. 564 Cr in Q1FY21
o 76% of advances* is secured loans
- Liabilities:
o Deposits excluding CD at Rs. 11,471 Cr as on 30th June 2020, growth of 30% YoY and 11% QoQ
o Retail TD at Rs. 4,377 Cr as on 30th June 2020, growth of 96% YoY and 15% QoQ
o Savings Account deposits at Rs. 2,024 as on 30th June 2020, growth of 9% QoQ
o CASA stood at Rs. 2,354 Cr as on 30th June 2020, CASA as a % of Total Deposits at 21%
^Advances = Gross Advances including IBPC issued
o All the Channels (TASC, CA, Corporate Salary, NR) started their full-fledged functioning in Jun’20
- Key Ratios:
o Cost to Income+ at 66.41% in Q1FY21 as compared to 69.09% in Q1FY20
o RoA^ and RoE# for Q1FY21 at 1.20% and 8.72% respectively
- Capital:
o As of June 30, 2020 Total CRAR at 21.59% and Tier-I CRAR of 20.61%; Well above minimum regulatory requirements of 15% and 7.5%
o Tier II Capital at 0.98%
- Treasury & Liquidity:
o Bank has undertaken Inter-Bank Participation Certificates (IBPCs) with a mix of PSL/Non-PSL advances which further enhances the liquidity of the Bank
o Liquidity Coverage Ratio (LCR) as on 30.06.2020 at 139.4% much above the minimum regulatory requirement of LCR at 80%
o Average cost of funds for Q1FY21 at 7.63%
- Profit & Loss:
o Net Interest Income for Q1FY21 at Rs. 404 Cr as against Rs. 337 Cr in Q1FY20, NIM* at 8.63%
o PBT before provisions and write off for Q1FY21 at Rs. 146 Cr as against Rs. 123 Cr in Q1FY20
o During the quarter, Bank made provisions of Rs. 68.34 Cr including additional provision of Rs. 45 Cr for potential impact of COVID-19 in addition to Rs. 99.63 Cr COVID-19 provision created in last quarter.
o The bank now carries Rs. 144.63 Cr of COVID-19 related provisions (other than Standard and NPA Provisions), which constitutes 0.93% of our total Gross Advances.
o PAT for Q1FY21 at Rs. 60 cr as against Rs. 59 Cr in Q1FY20
NIM = Net interest income as a % of avg. income earning assets |+Cost to income ratio is calculated as a ratio of Operating expenses divided by Net Operating Income (Net Operating Income is a sum of net interest income and other income) ^RoA – ratio of the net profit for the period/year total average assets | RoE# – Ratio of the net profit for the period/ to the average shareholders’ Equity
- Balance Sheet:
- Advances^ as of June 30, 2020 grew 27% YoY to Rs. 15,573 Cr
o Micro Finance grew by 16% YoY from Rs. 3,124 Cr in Q1FY20 to Rs. 3,618 Cr in Q1FY21
o Small Business Loans (Incl. HF) grew by 32% YoY from Rs. 4,926 Cr in Q1FY20 to Rs. 6,484 Cr in Q1FY21
o Vehicle Finance grew by 25% YoY from Rs. 3,027 Cr in Q1FY20 to Rs. 3,776 Cr in Q1FY21
o MSE Finance grew by 154% YoY from Rs. 280 Cr in Q1FY20 to Rs. 712 Cr in Q1FY21
o Corporate Loans grew by 39% YoY from Rs. 555 Cr in Q1FY20 to Rs. 772 Cr in Q1FY21
- Liabilities & Branch Banking:
- Deposits excluding CD at Rs. 11,471 Cr, growth of 30% YoY
- Retail TD at Rs. 4,377 Cr as on 30th June 2020, growth of 96% YoY and 15% QoQ
- Savings Account deposits at Rs. 2,024 as on 30th June 2020, growth of 9% QoQ
- CASA stood at Rs. 2,354 Cr as on 30th June 2020, CASA as a % of Total Deposits at 21%
- Asset Quality:
- GNPA$ at 2.68% in Q1FY21 as compared to 2.72% in Q4FY20 and 2.73% in Q1FY20
- NNPA$ at 1.39% in Q1FY21 as compared to 1.50% in Q4FY20 and 1.54% in Q1FY20
- Moratorium Update:
| Asset Products | As on June 2020 | As on July 2020 |
| Opt in % of Gross Advances as on 31st March 2020 | Opt in % of Gross Advances as on 30th June 2020 | |
| Micro Finance | 59% | 42% |
| Small Business Loans | 42% | 40% |
| New Commercial Vehicle Finance | 65% | 54% |
| Used Commercial Vehicle Finance | 70% | 60% |
| MSE Finance (Working Capital) | 48% | 46% |
| Corporate – NBFC Book | 0% | 0% |
| Corporate – Small Corporate | 96% | 96% |
| Total | 51% | 43% |
$GNPA & NNPA including IBPC.
EQUITAS HOLDINGS LIMITED -File Photo GPN
As a pre-condition to small finance bank licensing guidelines by RBI, amongest other conditions, Equitas Small Finance Bank was required to be listed within three years from the date of commencement of operations (September 5, 2016).
The management and the board of directors remain committed to completing the IPO of shares in due course, once normalcy in business operations is restored, it said.
The board has declared an interim dividend of Re 1 per equity share of Rs 10 each for the financial year 2020-21, at its meeting held on August 10, 2020.
During the quarter ended June 30, 2020, the management of the bank decided to extend benefit of charging interest on simple interest basis as against compound basis during the moratorium period, on loans that are under moratorium, the company said.
“Accordingly, based on the revised estimated cashflows, the bank has estimated and recorded a modification loss of Rs 23.37 crore during the period ended June 30, 2020,” Equitas Holdings said. It has another subsidiary Equitas Technologies Pvt Ltd, which is engaged in the business of freight aggregation.
Equitas Holdings is a non-deposit taking systemically important – core investment company. Shares of Equitas Holdings traded 1.96 per cent higher at Rs 51.90 apiece on the BSE. ENDS
Be the first to comment on "Equitas Holdings Limited [EHL] announces the Q1FY21 financial performance (unaudited) of its subsidiary Equitas Small Finance Bank [ESFBL]"