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Equitas Small Finance Bank (SFB) announced that its total deposits, including certificates of deposit, jumped 29.25% to Rs 39,859 crore as on September 30, 2024 from Rs 30,839 crore recorded as on September 30, 2023.
On a quarterly (QoQ) basis, total deposits increased by 6.22% from Rs 37,524 crore posted on June 30, 2024.
Total gross advances increased by 15.44% YoY (YoY) and 3.38% QoQ to Rs 36,050 crore as on September 30, 2024.
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Total gross advances include Interbank Participation Certificate (IBPC)/Securitized/Allocated portfolio amounting to Rs 1,396 crore as on September 30, 2024, compared to Rs 2,321 crore as on June 2024.
As of September 30, 2024, Current Account Savings Account (CASA) deposits stood at Rs 12,184 crore, registering a growth of 17.37% YoY and 3.92% QoQ. The CASA ratio of banks stood at 31% as of September 30, 2024, down from 34% as of September 30, 2023.
Cost of funds increased to 7.50% in Q2FY25 from 7.21% in Q2FY24 and 7.46% in Q1FY25.
The Bank has seen strong growth in small business lending and affordable housing financing and has been cautious in microfinance. The microfinance sector continues to experience stress, with arrears remaining at high levels. We expect to see stress for some time to come. The Bank will continue to work with other industry players to improve lending practices, which should bring comfort back into this product, the bank said in its exchange filing.
Furthermore, the bank said that microfinance contributes around 16% to the bank’s total advances as of September 24 and is expected to contract in the long term. The Bank is placing greater emphasis on products such as small business housing microloans, which cater to the high end of the microfinance customer segment.
Over time, as this dynamic accelerates, we believe it will offset the expected decline in microfinance growth. Deposits continue to grow strongly and we have been able to maintain the CASA ratio after a few quarters of decline.
Equitas Small Finance Bank is one of the largest small finance banks in India.
The bank reported an 86.5 per cent decline in its net profit to Rs 25.76 crore in Q1 FY25 compared to Rs 191.20 crore posted in Q1 FY24. The total income of the bank surged 19.9% YoY to Rs 1,709.66 crore in Q1FY25.
The counter increased by 0.24% to end at Rs 75.26 on Friday, October 4, 2024.
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First publication: October 5, 2024 | 4:28 p.m. STI