Wednesday, 12 August 2020

Equitas Holdings Limited [EHL] announces the

Equitas Holdings Limited [EHL] announces the Q1FY21 financial performance (unaudited) of its subsidiary Equitas Small Finance Bank [ESFBL]
PBT before provision & Write-off at Rs. 146 Cr, growth of 19% YoY
Cumulative COVID provisions of Rs. 144.63 Cr
Moratorium Opt in % at 43% as of July 2020 from 51% as of June 2020
Retail TD at Rs. 4,377 Cr, growth of 96% YoY
Q1FY21 Highlights:
1.      Key Highlights for Q1FY21:
 ·         Advances^:
o   Advances^ as of Q1FY21 was at Rs. 15,573 Cr, Advances^ growth of 27% YoY 
o   The Bank disbursed Rs. 564 Cr in Q1FY21
o   76% of advances* is secured loans
 ·         Liabilities:
o   Deposits excluding CD at Rs. 11,471 Cr as on 30th June 2020, growth of 30% YoY and 11% QoQ
o   Retail TD at Rs. 4,377 Cr as on 30th June 2020, growth of 96% YoY and 15% QoQ
o   Savings Account deposits at Rs. 2,024 as on 30th June 2020, growth of 9% QoQ
o   CASA stood at Rs. 2,354 Cr as on 30th June 2020, CASA as a % of Total Deposits at 21%



^Advances = Gross Advances including IBPC issued

o   All the Channels (TASC, CA, Corporate Salary, NR) started their full-fledged functioning in Jun’20
·         Key Ratios:
o   Cost to Income+ at 66.41% in Q1FY21 as compared to 69.09% in Q1FY20
o   RoA^ and RoE# for Q1FY21 at 1.20% and 8.72% respectively
·         Capital:
o   As of June 30, 2020 Total CRAR at 21.59% and Tier-I CRAR of 20.61%; Well above minimum regulatory requirements of 15% and 7.5%
o   Tier II Capital at 0.98%
 ·         Treasury & Liquidity:
o   Bank has undertaken Inter-Bank Participation Certificates (IBPCs) with a mix of PSL/Non-PSL advances which further enhances the liquidity of the Bank
o   Liquidity Coverage Ratio (LCR) as on 30.06.2020 at 139.4% much above the minimum regulatory requirement of LCR at 80%
o   Average cost of funds for Q1FY21 at 7.63%
2.      Profit & Loss:
o   Net Interest Income for Q1FY21 at Rs. 404 Cr as against Rs. 337 Cr in Q1FY20, NIM* at 8.63%
o   PBT before provisions and write off for Q1FY21 at Rs. 146 Cr as against Rs. 123 Cr in Q1FY20
o   During the quarter, Bank made provisions of Rs. 68.34 Cr including additional provision of Rs. 45 Cr for potential impact of COVID-19 in addition to Rs. 99.63 Cr COVID-19 provision created in last quarter.
o   The bank now carries Rs. 144.63 Cr of COVID-19 related provisions (other than Standard and NPA Provisions), which constitutes 0.93% of our total Gross Advances.
o   PAT for Q1FY21 at Rs. 60 cr as against Rs. 59 Cr in Q1FY20
NIM = Net interest income as a % of avg. income earning assets |+Cost to income ratio is calculated as a ratio of Operating expenses divided by Net Operating Income (Net Operating Income is a sum of net interest income and other income) ^RoA – ratio of the net profit for the period/year total average assets | RoE# - Ratio of the net profit for the period/ to the average shareholders’ Equity
  3.      Balance Sheet:
 ·         Advances^ as of June 30, 2020 grew 27% YoY to Rs. 15,573 Cr
o   Micro Finance grew by 16% YoY from Rs. 3,124 Cr in Q1FY20 to Rs. 3,618 Cr in Q1FY21
o   Small Business Loans (Incl. HF) grew by 32% YoY from Rs. 4,926 Cr in Q1FY20 to Rs. 6,484 Cr in Q1FY21
o   Vehicle Finance grew by 25% YoY from Rs. 3,027 Cr in Q1FY20 to Rs. 3,776 Cr in Q1FY21
o   MSE Finance grew by 154% YoY from Rs. 280 Cr in Q1FY20 to Rs. 712 Cr in Q1FY21
o   Corporate Loans grew by 39% YoY from Rs. 555 Cr in Q1FY20 to Rs. 772 Cr in Q1FY21
4.      Liabilities & Branch Banking:
·         Deposits excluding CD at Rs. 11,471 Cr, growth of 30% YoY
·         Retail TD at Rs. 4,377 Cr as on 30th June 2020, growth of 96% YoY and 15% QoQ
·         Savings Account deposits at Rs. 2,024 as on 30th June 2020, growth of 9% QoQ
·         CASA stood at Rs. 2,354 Cr as on 30th June 2020, CASA as a % of Total Deposits at 21%
 5.      Asset Quality:
·         GNPA$ at 2.68% in Q1FY21 as compared to 2.72% in Q4FY20 and 2.73% in Q1FY20
·         NNPA$ at 1.39% in Q1FY21 as compared to 1.50% in Q4FY20 and 1.54% in Q1FY20

6.      
Moratorium Update:
Asset Products
As on June 2020
As on July 2020
Opt in % of Gross Advances as on 31st March 2020
Opt in % of Gross Advances as on 30th June 2020
Micro Finance
59%
42%
Small Business Loans
42%
40%
New Commercial Vehicle Finance
65%
54%
Used Commercial Vehicle Finance
70%
60%
MSE Finance (Working Capital)
48%
46%
Corporate – NBFC Book
0%
0%
Corporate – Small Corporate
96%
96%
Total
51%
43%

$GNPA & NNPA including IBPC

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