EQUITAS SMALL FINANCE BANK LIMITED Announces Q3FY21 Results
Posted on: 29/Jan/2021 11:16:16 AM
The Board of Directors of Equitas Small Finance Bank Limited at its meeting held today, approved the unaudited financial results for quarter ended December 31, 2020.
Q3FY21 Highlights:
1. Key Highlights for Q3FY21:
Advances:
- Advances as of Q3FY21 was at Rs. 17,373 Cr, Advances growth of 19% YoY
- Disbursement at 80% pre-Covid level, disbursed Rs. 2,461 Cr in Q3FY21
- 79.21% of advances is secured loans, Microfinance loans constitute 20% with no exposure in Assam and West Bengal
- Collection & Billing efficiency for the month of December 2020 at 105.36% and 88.73% respectively
Collection efficiency nears pre-covid levels:
- MFI X Bucket Collection efficiency for the month of December 2020, December 2019 & February 2020 at 98.30%, 98.40% & 98.50% respectively
- SBL X Bucket Collection efficiency for the month of December 2020, December 2019 & February 2020 at 99.05%, 99.34% & 99.41% respectively
- VF X Bucket Collection efficiency for the month of December 2020, December 2019 & February 2020 at 95.72%, 95.09% & 96.50% respectively
Liabilities:
- Deposits excluding CD at Rs. 15,691 Cr, growth of 62% YoY and 25% QoQ
- Retail TD at Rs. 5,500 Cr, growth of 79% YoY and 10% QoQ
- Savings Account deposits at Rs. 3,524, growth of 96% YoY and 24% QoQ
- CASA stood at Rs. 3,967 Cr, CASA is 25% of Total Deposits
- Acquired & On boarded over ~1,28,000 Savings Account Customers through Integrated Digital Marketing
Key Ratios:
- Cost to Income improves to 56.35% in Q3FY21 as compared to 66.24% in Q3FY20 and 58.15% in Q2FY21
- RoA and RoE for Q3FY21 at 1.83% and 14.32% respectively
Capital:
- As of September 30, 2020 Total CRAR at 21.58 and Tier-I CRAR of 20.81%; Well above minimum regulatory requirements of 15% and 7.5%. Tier II Capital at 0.77%
Treasury & Liquidity:
- The Bank currently maintains ‘excess’ liquidity in the form High Quality Liquid Assets (HQLA). Liquidity Coverage Ratio (LCR) as on 31.12.2020 at 196%. The Bank intends to revert to ‘adequate surplus liquidity’ of ~130%
- During the quarter, Bank repaid TLTRO borrowings of Rs 124 crores to RBI. Associated Non-SLR securities were shifted out of HTM and partially sold. Profit realised on such sale amounted to Rs. 3 Crore
- During the quarter, Bank sold certain SLR securities from HTM (through OMO / secondary market) a and realised profits amounting to Rs. 33 Crore
- During the quarter, Bank sold PSLCs worth Rs. 1,800 Crore. Income recognised on sale of PSLCs for this quarter amounted to Rs. 17.4 Crore
Human Capital:
- Leadership team strengthened with the appointment of Rohit Padhke to spear head Mortgages and vehicle finance and Siby Sebastin as EVP - Operations
- Chief Digital Officer and Deputy CTO appointed to strengthen the Banks digital transformation
2. Profit & Loss:
- Net Interest Income for Q3FY21 at Rs. 484 Cr as against Rs. 384 Cr in Q3FY20, growth of 26% YoY. NIM at 8.47%
- Core Income (Net Income other than PSL Fees, Treasury & Others) at 87%
- PBT before provisions and write off for Q3FY21 at Rs. 275 Cr as against Rs. 158 Cr in Q3FY20, growth of 74%
- PAT for Q3FY21 at Rs. 111 cr as against Rs. 94 Cr in Q3FY20, growth of 18%
3. Asset Quality, Provisions & Restructuring:
- COVID related provisions as at December 31, 2020 stood at Rs. 57.01 crore after adjusting Rs 113.62 crores against actual provisioning requirements for slippages in respect of specific loan accounts
- In accordance with the Resolution Framework for COVID-19 announced by RBI on August 6, 2020, as at December 31, 2020, the Bank has approved, for certain eligible borrowers, one-time restructuring of 1.97% of advances
- GNPA at 2.23% in Q3FY21 as compared to 2.39% in Q2FY21 and 2.86% in Q3FY20
- NNPA at 0.65% in Q3FY21 as compared to 1.00% in Q2FY21 and 1.73% in Q3FY20
- The Bank has not classified any NPAs since August 31, 2020; basis the interim order of Hon. Supreme Court. If the Bank had classified borrower’s accounts as NPA after August 31, 2020, the Bank`s Gross NPA Ratio and net NPA Ratio would have been 4.16% and 1.71% respectively. Pending the decision of the Court, in respect of these accounts made a contingent provision (including on interest accrued) of Rs 180.28 Crores, as a matter of prudence
- Provision coverage ratio to directionally improve as Bank further accelerates IRAC provision norms across DPD buckets
