Equitas Holdings tumbles after weak Q2 numbers

Equitas Holdings fell 4.16% to Rs 93.25 after consolidated profit after tax fell 19.30% to Rs 41.4 crore in Q2 FY20 from Rs 51.3 crore in Q2FY19.

Total income rose by 19.11% to Rs 704.81 crore in Q2 September 2019 as compared to Rs 591.70 crore in Q2 September 2018.

Equitas Small Finance Bank's profit after tax (PAT) was down by 2.26% to Rs 47.6 crore in Q2 FY20 as compared to Rs 48.7 crore in Q2 FY19, impacted by deferred tax asset (DTA) write down of Rs 24.5 crore due to changes in corporate tax rate.

Net interest income (NII) of the small finance bank grew by 29% year-on-year (YoY) to Rs 350.5 crore while the net interest margin (NIM) stood at 8.83% in Q2 September 2019 as compared to Q2 September 2018.

Cost to income ratio stood at 69.07% in Q2 FY20 as compared to 69.09% in Q2 FY19.

Provision coverage ratio of the bank stood at 44% as on 30 September 2019.

The ratio of gross NPAs to gross advances stood at 2.88% as on 30 September 2019 as against 2.75% as on 30 June 2019 and 3.36% as on 30 September 2018.

The ratio of net NPAs to net advances stood at 1.76% as on 30 September 2019 as against 1.70% as on 30 June 2019 and 2.18% as on 30 September 2018.

The small finance bank's advances grew 33% to Rs. 13,269 crore in Q2 September 2019 over Q2 September 2018. Unsecured lending, however, constituted 26% of total portfolio.

Equitas Small Finance Bank is a wholly owned subsidiary's Equitas Holdings.

Equitas Holdings is a core investment company. The activity of the company is making investment in subsidiary companies and providing loans to them.

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