Vasudevan said as of March 31, the bank's advances grew 17% year on year and about 81% was of secured loans. Its flagship product, small business loan, continues to show reasonable growth.
Equitas Small Finance Bank (Equitas SFB) said the bank had a reasonably good fourth quarter as collections and disbursements continued to pick up across the product segments. The vehicle finance portfolio, in particular, has done better than its initial assessment.
The Chennai-headquartered bank said it continued to focus on collections in March and achieved collection efficiency of 108.51% while its billing efficiency stayed at 91.12%. Collection efficiency represents total collections during the month as a percentage of March total EMI due, while 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 call post announcement of March quarter results that the bank had a reasonably good quarter as collections and disbursements continued to pick up across the product 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 said.
However, he added that with fresh lockdowns and restrictions being announced across various parts of the country and the ambiguity of what impact it would have on the customer segment, guidance for the current year looked quite difficult to make at this point in time.
Vasudevan said as of March 31, the bank’s advances grew 17% year on year and about 81% was of secured loans. Its flagship product, small business loan, continues to show reasonable growth.
Used car advance crossed Rs 120 crore, which was launched in the end of the last financial year. MSE finance, started post conversion to a bank, continues to do well and now contribute 7% of the overall book.
He said the bank acquired 4.76 lakh liability accounts in FY2021 as compared to 1.59 lakh in FY2020, which is almost like three times or a 300% jump. This was largely led by the bank’s multiple digital initiatives, improved productivity and a very strong leadership. Deposit grew by 58% YoY, savings account grew by 174% and 45% quarter on quarter.
According to him, the bank has fairly reached its destination product mix level, with micro finance at 18%, small business loans at 45%, commercial vehicle at around 25% and the remaining being SME and NBFC lending. He maintained that the bank had achieved a steady product 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 said, 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.”