Equitas SFB expects to recast loans up to Rs 700 crore by December

Equitas Small Finance Bank (SFB) expects to restructure loans worth up to Rs 700 crore till December under the Covid-19 regulatory package.
 

The Chennai-based private lender has guided for restructuring to be Rs 1,500-1,600 crore for those impacted by Covid-19 under the package announced by the Reserve Bank of India (RBI).
 

P N Vasudevan, its managing director and chief executive officer, said the SFB has completed work on loans of Rs 900 crore till July under the second regulatory package. The invocation and completion are to be done by the end of the third quarter.
 

Total advances restructured under Covid 1.0 and 2.0 stand at just over Rs 1,300 crore, which comprises around 7.5 per cent of gross advances.
 

The RBI had announced Covid 1.0 package in 2020 in the aftermath of the first wave of the pandemic.
 

Referring to a trend in collections, Vasudevan said their levels have been improving. July and August have been better, with the easing of restrictions in various parts of the country. Repayments, too, have improved and stress has plummeted, he added.
 

Prior to the pandemic break-out, gross non-performing assets (GNPAs) had never crossed the 3-per cent threshold and were in the 2.5-2.75-per cent range. GNPAs rose 4.58 per cent in June. Vasudevan did not specify what GNPA levels the SFB intended to reach by March next year.
 

With regard to growth in the loan book, he said the SFB expects to grow at 25 per cent per year. Before the pandemic, the growth rate was 35 per cent.
 

Its gross loan advances rose 15 per cent year-on-year to Rs 17,837 crore till June, from Rs 15,573 crore in June last year.