Equitas Small Finance Bank net up 16% in FY’20

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Published: May 16, 2020 3:20:55 AM

Equitas Small Finance Bank (ESFBL) a subsidiary of Equitas Holdings, has posted a net profit of Rs 244 crore for the year ended March 31, 2020 as compared to Rs 211 crore in the previous financial year, registering an increase of 15.6%.

ESFBL’s total income grew by 22% to Rs 2,927.8 crore during the year from Rs 2,394.83 from the previous year.

Equitas Small Finance Bank (ESFBL) a subsidiary of Equitas Holdings, has posted a net profit of Rs 244 crore for the year ended March 31, 2020 as compared to Rs 211 crore in the previous financial year, registering an increase of 15.6%. ESFBL’s total income grew by 22% to Rs 2,927.8 crore during the year from Rs 2,394.83 from the previous year.

The ratio of gross NPAs to advances grew to 3% from 2.53% in the previous year while the percentage of net NPA to advances rose to 1.66% from 1.44%, said a regulatory disclosure by the bank.

ESFBL said that the lockdown had led to significant disruption and dislocation of individuals and businesses, impacting regular banking operations such as lending, fund-mobilisation and collections.

It has made a provision of Rs 99.63 crore in the period ended March 31, 2020, based on assessment of recoverability of advances, after considering the internal and external information and norms prescribed by the RBI.

ESFBL granted a moratorium of three months on payment of all installments and interest falling due between March 1 and May 31, 2020 to all eligible borrowers. The full extent of Covid-19 impact on the bank’s operations and financial metrics, including impact on provisioning on advances, will depend on government and regulatory guidelines and future developments, it said.

The bank had filed a revised Draft Red Herring Prospectus (DRHP) in March 2020 after addressing Sebi’s observations on its previous DRHP. The bank which was in the process of completing the Initial Public Offer (IPO) of shares had to defer process for listing due to Covid-19 pandemic and the consequent lockdown.

On the IPO plans, the company revealed that the management and the board of directors remain committed to completing the IPO of shares in due course, once normalcy in business operations is restored.

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