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 30^th 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

CHOLA PARTNERS WITH MARUTI SUZUKI FOR

CHOLA PARTNERS WITH MARUTI SUZUKI FOR VEHICLE FINANCE

§  ‘Buy Now Pay Later’ to make car financing easier for customers

§  Allows flexibility to customers to pay EMIs after two months of availing the loan

With the aim to finance a new car purchase easy and affordable, Cholamandalam Investment & Finance Company Limited (CIFCL) today announced a partnership with Maruti Suzuki India Limited. The objective of this partnership is to provide customised auto retail financing solutions to retail buyers. The ‘Buy Now Pay Later’ offer is aimed to provide customers with easy financing options.

A two-month deferment of EMI will bring advantage to car customers who currently are under resource crunch amidst the COVID-19 pandemic.

Encouraging people to go for financing of a new vehicle, the ‘Buy Now Pay Later’ offer will allow customers to start paying the EMIs after 60 days of loan disbursement. This will make the process of car buying more convenient in these unprecedented times. With Maruti Suzuki’s vast network of 3,086 new car retail outlets across 1,964 cities and towns and CIFCL’s extensive branch presence across the country, the offer is expected to benefit many customers. The offer is available on select Maruti Suzuki models and will be applicable on loan disbursement till June 30, 2020.

Commenting on the partnership, Mr. Ravindra Kundu, Executive Director, Cholamandalam Investment & Finance Company Limited said, “With the lockdown ending soon but the COVID-19 scare still far from being gone, social distancing is bound to be the new normal for at least some time to come. In such a scenario, owning a vehicle is certainly one of the most practical options to move ahead. Given this backdrop, we are very excited to partner with Maruti Suzuki India Limited, a trusted and renowned brand in India. This partnership will give us a strong foot hold in the car financing space, with our 1094 branches spread across semi urban and rural markets. The synergies between the organizations are aimed towards singular focus to bring benefits to the customers. This ‘Buy Now, Pay Later’ offer will help customers in realizing their car dreams without postponing their purchase any further. This partnership is also in line with our continuous endeavour in enabling our customers to ‘Enter a Better Life’.”

Speaking on the customer-centric initiative, Mr. Shashank Srivastava, Executive Director (Marketing & Sales), Maruti Suzuki said, “Customers have always been at the heart of Maruti Suzuki’s efforts of making personal mobility accessible. The partnership with Cholamandalam Investment & Finance company Limited will boost convenience by offering customized retail financing to the customers. It is aimed to offer comfort to buyers who may have faced liquidity crunch during the Covid-19 lockdown.  I am sure that the “Buy-Now-Pay-Later Offer” will encourage customers towards car purchase without putting immediate extra pressure on their pockets.”

Ashok Leyland partners with Chola

Ashok Leyland partners with Chola for Vehicle Finance

Ashok Leyland, flagship of the Hinduja Group and one of the largest commercial vehicle manufacturers in India, today signed a Memorandum of Understanding (MoU), with Cholamandalam Investment and Finance Company Limited (Chola), for a strategic tie-up on vehicle financing, for a period of two years. This MoU will equip both, Ashok Leyland and Chola, to reach out to a diverse set of customers with customised financial solution. Combined strength of both brands will help reach out to customers in need of financial assistance, across India, where either brand has a presence. Ashok Leyland, is the first manufacturer in India to be ready with the complete range of BS6 vehicles which have been developed specifically for Indian conditions and this tie-up will further help customers to own and derive the benefits of Ashok Leyland’s industry-first and industry leading technologies.

Commenting on the partnership, Mr. Anuj Kathuria, Chief Operating Officer, Ashok Leyland, said, “We always think customer-first and this tie-up with Chola is yet another step in that direction. With Chola as one of our trusted partners for customised financial solution, our combined pan-India reach will help customers to choose the financial solution they desire. Ashok Leyland products represent differentiated technology with best-in-class total cost of ownership, thereby providing better profitability to our customers. Our tie-up with Chola will further enhance this and thereby also delivering on our brand promise of ‘Aapki Jeet. Hamari Jeet’”.

“We are happy to be partnering with Ashok Leyland, a leading commercial vehicle brand with a culture of innovation and excellence, and a proven track record over the years. Building quality relationships has always been a cornerstone of Chola’s philosophy. Over the last 4 decades, we have been building lasting relationships with our customers and partners by consistently delivering excellent value for both. With our strong network of 1000+ branches across India, we aim to offer the customers a never before experience through customised finance offerings that would come with speedy, convenient and transparent processes. This partnership is also in line with our continuous endeavor in enabling our customers to ‘Enter a Better Life’,” says Mr. Ravindra Kundu, President & Business Head  -  Vehicle Finance, Cholamandalam Investment and Finance Company Limited.