Equitas Small Finance Bank (Equitas SFB) stated the bank had a reasonably very good fourth quarter as collections and disbursements continued to choose up across the item segments. The automobile finance portfolio, in specific, has carried out improved than its initial assessment.
The Chennai-headquartered bank stated it continued to concentrate on collections in March and accomplished collection efficiency of 108.51% although its billing efficiency stayed at 91.12%. Collection efficiency represents total collections in the course of the month as a percentage of March total EMI due, although billing efficiency represents only the EMI collected as a percentage of March total EMI due.
MD & CEO P N Vasudevan told analysts at an earnings contact post announcement of March quarter outcomes that the bank had a reasonably very good quarter as collections and disbursements continued to choose up across the item segments.
“On the liabilities front, the team has done an excellent job across all indicators, be it retail growth, fee income, digital traction, branch productivity. We are seeing a very good traction,” he stated.
However, he added that with fresh lockdowns and restrictions getting announced across different components of the nation and the ambiguity of what influence it would have on the client segment, guidance for the existing year looked fairly hard to make at this point in time.
Vasudevan stated as of March 31, the bank’s advances grew 17% year on year and about 81% was of secured loans. Its flagship item, smaller small business loan, continues to show affordable development.
Used automobile advance crossed Rs 120 crore, which was launched in the finish of the last monetary year. MSE finance, began post conversion to a bank, continues to do nicely and now contribute 7% of the all round book.
He stated the bank acquired 4.76 lakh liability accounts in FY2021 as compared to 1.59 lakh in FY2020, which is pretty much like 3 instances or a 300% jump. This was largely led by the bank’s many digital initiatives, enhanced productivity and a really sturdy leadership. Deposit grew by 58% YoY, savings account grew by 174% and 45% quarter on quarter.
According to him, the bank has pretty reached its location item mix level, with micro finance at 18%, smaller small business loans at 45%, industrial automobile at about 25% and the remaining getting SME and NBFC lending. He maintained that the bank had accomplished a steady item mix. “Our affordable housing loan, which we started about an year ago, has started to contribute and then there are few supplementary products like used car and gold loan,” he stated, adding, “We are not really looking to launch any new vertical as such because we are fairly comfortable with the product mix that we have today.”