Equitas Small Finance Bank gains after advances rise 15% YoY in Q1 FY22

Equitas Small Finance Bank rose 1.54% to Rs 59.50 after the bank's gross advances increased 15% to Rs 17,839 crore in Q1 FY22 compared with Rs 15,573 crore in Q1 FY21.

Sequentially, the bank's gross advances have remained flat compared with Rs 17,925 crore in Q4 FY21.

Disbursement for the quarter rose 125% to Rs 1,271 crore in Q1 FY22 from Rs 564 crore in Q1 FY21. However, disbursement declined 50% in Q1 FY22 from Rs 2,535 crore in Q4 FY21.

Total deposits increased by 45% to Rs 17,095 crore in Q1 FY22 from Rs 11,787 crore in Q1 FY21. Deposits are up 4% in Q1 quarter compared with Rs 16,392 crore in Q4 FY21.

CASA jumped 189% to Rs 6,794 crore in Q1 FY22 from Rs 2,354 crore in Q1 FY21. It has risen by 21% from Rs 5,614 crore in Q4 FY21.

CASA ratio was at 40% as on 30 June 2021 as against 20% as on 30 June 2020 and 34% as on 31 March 2021.

P N Vasudevan, managing director and CEO of Equitas Small Finance Bank, said: "The first quarter of the year witnessed tepid repayments as most of the regions the bank operates in were under lockdown. The bank's borrowers are largely in the informal segments dealing in daily use products and services which were temporarily disrupted due to the COVID-19 restrictions imposed.

However, during the month of June 2021, states in the West and North experienced improved collection efficiencies as lockdowns eased while Southern states opened up towards the end of the month. We anticipate a sharp improvement in collections in the coming months as COVID wave 2 recedes."

The bank posted a 162.4% jump in net profit to Rs 112.87 crore on a 24.7% increase in total income to Rs 996.73 crore in Q4 FY21 over Q4 FY20.

Equitas Small Finance Bank is one of the largest small finance banks in India in terms of number of banking outlets and the second largest SFB in India in terms of assets under management and total deposits in FY2019.

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