Equitas Small Finance Bank announced that its collection efficiency stood at 77.84% in May 2021 as against 105.16% in April 2021 and 108.51% in March 2021.The billing efficiency stood at 66.97% in May 2021 as against 84.68% in April 2021 and 91.12% in March 2021.
For non-NPA segment, collection efficiency stood at 73.72% in May 2021 as against 95.69% in April 2021 and 104.88% in March 2021. Collection efficiency means the ratio of total revenue realised to the total revenue billed during the same financial year. The segment's billing efficiency stood at 69.41% in May 2021 as against 88.12% in April 2021 and 94.46% in March 2021. Billing efficiency refers to the ratio of energy units sold to consumers and energy billed to consumers in percentage terms for a particular period.
Commenting on the collection trends, P N Vasudevan, the managing director and chief executive officer (CEO) of Equitas Small Finance Bank, has said: "In view of the lockdowns in different parts of the country, normal commercial life has been disrupted. Our customers who are majorly small traders and business people engaged in daily use products, were unable to open their shop and their livelihood has been accordingly impacted. Our conscious plan to grow the unsecured micro finance book at a slower pace compared to the rest, has helped mitigate the overall credit cost impact on the bank. As of 31 March 2021, the unsecured micro finance advances were 18% while the remaining 81% were secured loans. The least impacted product which is Small Business Loans secured by house property, constitutes 45% of the total advances."
"Last year, we had seen as much as 90% by number of clients and 98% by value avail moratorium in April 2020 but post September 2020, we had seen a strong pick up in collection efficiency and ended the year with March 2021 at pre-covid level collection efficiencies. As and when the severity of Wave 2 recedes from the country and life comes back to normal, our customers are expected to bounce back quickly, since they deal largely in daily use products and services. We are beginning to see some relaxations in the lockdowns in June and hope that 2nd quarter would be largely back to normal."
"We will be studying the impact of stress created by wave 2 on our customers and any possible restructuring they may require to help revive their livelihood. As a country we need to guard against a possible 3rd wave of the pandemic. While wearing masks and maintaining distance is important, large scale vaccinations is currently believed to be the only long-term tool available to us to protect ourselves against any such future waves. We, at Equitas have been doing our significant bit towards working with various State and local Governments in mass mobilising people for vaccination camps across the country. We have so far helped organise 656 vaccination camps across the country and helped vaccinate around 42,800 people who are all from the low-income segments," he added.
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.
Shares of Equitas Small Finance Bank rose 1.47% to Rs 61.95 on BSE. The stock hit an intraday low of Rs 60.70 and an intraday high of Rs 62.80 so far.
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