Equitas advances grow by 44% at INR 11,819 crore

www.newsbarons.com

Profit before Provision grew 87% to INR 126 crore, cost to income at 68.54% as compared to 76.88% in Q4FY18.

Equitas Holdings Limited [EHL] announced Audited Consolidated results for the year ended March 31, 2019:

Highlights:

Equitas Holdings Limited [EHL] has adopted Indian Accounting Standards (Ind AS) for the year FY19 with Ind AS compliant comparatives for FY18.

Given the first time adoption of Indian Accounting Standards (Ind AS), EHL has also provided financials as per iGAAP for the quarter ended 31st March 2019. iGAAP financials are based on management reports and have not been subject to review/audit by Auditors. The purpose of iGAAP financials is merely to provide an update on business performance.

Quarterly Highlights (iGAAP):

Key Highlights for Q4FY19:

• NII grew 34% YoY to INR 333 crore, NIM*at 8.85%
• Profit before Provision grew 87% to INR 126 crore, cost to income at 68.54% as compared to 76.88% in Q4FY18
• PAT grew 97% YoY to INR 68.73 crore as compared to INR 34.89 crore in Q4FY18
• Advances grew 44% YoY to INR 11,835 crore
• Unsecured lending constituted 29% of total portfolio
• Deposits* grew by 70% YoY to INR 8,016 crore CASA ratio at 28%
• Customer Deposits as a % of Total Borrowings stands at a healthy 62.6% vs. 55.6% sequentially
• Capital Adequacy at 22.44% with Tier I ratio at 20.92%

*Deposits excluding CD’s | NIM = Net interest income as a % of avg. income earning assets | Customer Deposits = CASA + Term Deposits

Profit & Loss:

• Net Interest Income grew by 34% YoY to INR 333 crore, NIM*at 8.85%
• Other Income grew by58% YoY to INR 68 crore
• Cost to Income ratio at 68.54% as compared to 68.24% previous quarter
• Cost to Assets stood at 7.08% including PSLC expense.
• Provisions and loan loss charges at INR 24.87 crore PCR stood at 43.38%.
• PAT at INR 68.73 crore as compared to a profit of INR 34.89 crore in Q4FY18
• Return ratios for Q4FY19: ROAat 1.77%. ROEat11.16%

Balance Sheet:

Advances:

Advances grew 44% YoY to INR 11,819 crore with growth across segments

o Micro Finance grew 34% YoY to Rs. 3,070 crore
o Small Business Loans (Incl. HF) grew 60% YoY to INR 4,703 crore
o Vehicle Finance grew 30% YoY to INR 2,935 crore
o MSE Finance (Incl. BL) grew 28% YoY to INR 525 crore
o Corporate Loans grew 151% YoY to INR 487 crore

Disbursements grew 32% YoY to INR 2,214 crore

Liabilities & Branch Banking:

• Deposits* grew by 70% YoY to INR 8,016 core CASA ratio at 28%
• Customer Deposits as a % of Total Borrowings stands at a healthy 62.62%
• Retail momentum picks up
o No of Retail Term deposits accounts stood at 1,06,955 vs. 75,663 last quarter
o Retail Term deposits stood at INR 2,408cr vs. INR 1,810 crore in Q3FY19
o No of Retail CASA customers stood at 477,053 as compared to 446,815 in Q3FY19
o CASA stood at INR 2,272 crore representing 17.74% of total borrowing

Bank mobilised over INR 159 crore in Insurance premium for the year. Mutual Fund Assets under management crosses INR 103 crore

*Deposits excluding CD’s | NIM = Net interest income as a % of avg. income earning assets | Customer Deposits = CASA + Term Deposits

Asset Quality:

• GNPA at 2.52% as compared to 3.13% in Q3FY19 and 2.72% in Q4FY18
• NNPA at 1.43% as compared to 1.7% in Q3FY19 and 1.44% in Q4FY18