Finance

Equitas Small Finance gains after gross advances rise in Q3

Equitas Microfinance Bank rose 1.20% to Rs 59 after the company said total advances rose 3% on a quarterly basis in the third quarter of December 2021 (Q3 FY22).

Total advances from Equitas Microfinance Bank increased by 13% YoY to Rs.19642 crore in the third quarter of FY22.

Expenses during the quarter increased by 10% YoY and decreased by 14% QoQ to Rs 2,717 crore.

Total deposits grew by 13% YoY and declined by 1% QoQ to Rs 17,884 crore in Q3 FY22.

During the quarter, Current and Savings Accounts stood at Rs 9,085 crore, up 129% YoY and 11% QoQ.

The current and savings accounts ratio was 50.80% in the third quarter of FY22, up from 45.30% in the second quarter of FY22 and 25% in the third quarter of FY21.

The bank said that during the quarter, it continued to focus on expanding and strengthening the liability franchise. Opening a new account through digital and physical channels has remained strong. Group deposits experienced a contraction as the bank focuses on retail deposits and the Liquidity Coverage Ratio (LCR) to a more normal level. The average LCR for the third quarter of FY22 was 126% compared to 139% in the second quarter of FY22.

Commenting on the performance, PN Vasudevan, Managing Director and CEO of Equitas Small Finance Bank said, “Demand for loans from borrowers from the informal sector remains very strong. During the third quarter, all accounts restructured during the year were due to fall due first installments. Against this background, collections continue to remain healthy. The recent rise in infections is something we are tracking closely and hopefully will not affect the livelihoods of borrowers.”

Equitas Microfinance Bank’s net profit decreased by 60% to Rs.41.19 crore against a 16.4% increase in total income to Rs.991.40 crore in Q2FY22 during Q2FY21.

Equitas Microfinance Bank offers products and services to meet the needs of individuals with limited access to formal financing channels, as well as SMEs and SMEs.

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(This story has not been edited by Business Standard employees and is automatically generated from a shared feed.)

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