Equitas Small Finance Bank Q4 net profit at INR 113 crore, up by 162%


Net Interest Income for Q4FY21 at INR 449 crore as against INR 424 crore in Q4FY20. 

The Board of Directors of Equitas Small Finance Bank Limited at its meeting held today, approved the audited financial results for quarter and full year ended March 31, 2021.

Q4FY21 Highlights:

1. Key Highlights for Q4FY21:

• Advances:
   o Advances as of Q4FY21 was at INR 17,925 Cr, Advances growth of 17% YoY
   o Disbursed INR 2,535 Cr in Q4FY21
   o 81.37% of advances is secured loans
   o New Product – Used Car Advances cross INR 120 Cr
   o Collection & Billing efficiency for the month of March 2021 at 108.51% and 91.12% respectively
   o Collection efficiency nears pre-covid levels:
   o MFI X Bucket Collection efficiency for the month of March 2021, December 2020 & Feb 2020 at 98.70%, 98.30% & 98.50% respectively
   o SBL X Bucket Collection efficiency for the month of March 2021, December 2020 & Feb 2020 at 99.60%, 99.05% & 99.41% respectively
   o VF X Bucket Collection efficiency for the month of March 2021, December 2020 & Feb 2020 at 98.85%, 95.72% & 96.50% respectively

*Management Overlay Provision – Provision carried in excess of the regulatory requirement

• Liabilities:
  o Deposits excluding CD at INR 16,319 Cr, growth of 58% YoY and 4% QoQ
  o Retail TD at INR 5,869 Cr, growth of 54% YoY and 7% QoQ
  o Savings Account deposits at INR 5,094 Cr, growth of 174% YoY and 45% QoQ
  o CASA stood at INR 5,614 Cr, CASA is 34% of Total Deposits

• Digital 2.0:


  o Tied-up with NiyoX in March 2021 to offer 2 in 1 wealth + Savings account. An industry first for offering Savings + Investment on a single platform. Opened 27,000+ accounts since launch in March 2021
  o Partnered with Groww for online FD opening. Pilot program in progress

Digital Payments & Acquisitions:

o FASTag – 78,000+ FASTags issued in Q4FY21, 1.3 Bn+ transaction throughput. Multiple toll plazas and parking terminals being acquired
o Micro ATM Services – 37 Bn+ transaction throughput, 10 Mn+ transactions processed
o UPI QR Acquiring – 92 Mn+ transaction throughput, 100,000+ transactions
o POS Acquiring – 3.4 Bn+ transaction throughput, 680,000+ transactions

Digital Transaction Banking:

o Corporate Payment Services – 6.6 Bn+ transaction throughput, 2 lacs+ transactions processed
o Aadhaar Enrolment & eKYC – 60,000+ enrolments across 75 branches, ~300,000 successful Authentication and eKYC transactions
o Video Banking – 9 Services Live, Same services to be exposed to Neo banking partners

Prepaid Engagements:

o Prepaid Gift Cards – Crossed 100 Mn+ transaction throughput
o Launched Prepaid Cards for Cooperative Societies
o Partnered with Fintechs for cashless campus programs

• Key Ratios:
o Cost to Income at 58.10%^ as compared to 56.35% in Q3FY21 and 62.14% in Q4FY20
o RoA and RoE for Q4FY21 at 1.80% and 13.52% respectively
^ Income considering net-off of switching fees & prepaid card expense

• Capital:
o As of March 31, 2021 Total CRAR at 24.18%, Tier-I CRAR of 23.23% and Tier II CRAR at 0.95%

• Treasury & Liquidity:
o The Bank’s Certificate of Deposit (CD) programme for INR 1,000 Cr has highest rating from at CRISIL A1+
o The Bank has adequate room available to avail refinance or raise funds through IBPC (with mix of PSL / Non-PSL) whenever required which provides strong cushion to ALM position of the Bank.
o The Bank currently maintains ‘surplus’ liquidity in the form of High Quality Liquid Assets (HQLA)
o During the quarter, Bank sold PSLCs worth INR 3,000 Cr
o Income booked on sale of PSLCs for this quarter amounted to INR 44.6 Cr which includes INR 5.8 Cr received in Q3FY21
o During the quarter, the Bank participated in equity primary market. Profits realised in those equity IPOs amounted to INR 2 Cr

2. Profit & Loss:
o Net Interest Income for Q4FY21 at INR 449 Cr as against INR 424 Cr in Q4FY20. NIM at 7.57%
o Core Income (Net Income other than PSL Fees, Treasury & Others) at 84%
o PBT before provisions and write off for Q4FY21 at INR 250 Cr as against INR 188 Cr in Q4FY20, growth of 33%
o PAT for Q4FY21 at INR 113 cr as against INR 43 Cr in Q4FY20, growth of 162%

3. Asset Quality, Provisions & Restructuring:
o During the quarter the Bank has written off of INR 171 Cr in the Micro Finance portfolio
o Loan loss and provision for FY21 was INR 375 Cr as against INR 247 Cr in FY20. The Bank holds a management overlay provision* of INR 153 Cr crore as of 31st March 2021
o GNPA at 3.59% in Q4FY21 as compared to 4.16% (proforma approach) in Q3FY21 and 2.72% in Q4FY20
o NNPA at 1.52% in Q4FY21 as compared to 1.71% (proforma approach) in Q3FY21 and 1.67% in Q4FY20
o Credit Cost for FY21 at 2.26%
o Provision coverage ratio at 58.59%
o Bank holds cumulative provision (standard asset + floating + provision for NPA) of 2.56% of advances
*Management Overlay Provision – Provision carried in excess of the regulatory requirement

4. Collection & Billing Efficiency Product Wise:

Particulars Collection Efficiency

December 2020



December 2020

Collection Efficiency

March 2021



March 2021

Micro Finance 97.98% 91.29% 93.44% 91.90%
Small Business Loans 104.56% 90.56% 106.56% 91.48%
Vehicle Finance 108.39% 82.25% 113.84% 87.74%
MSE Finance 192.55% 88.88% 180.26% 89.04%
Corporate 149.36% 94.51% 174.91% 99.91%
Total 105.36% 88.73% 108.51% 91.12%

1. Collection efficiency represents total collections during the month as a percentage of March months total EMIs due
2. Billing efficiency represents only the EMIs of March alone collected as a percentage of March months total EMIs due. The March month total EMIs includes EMIs of accounts which are in NPA also and not just standard assets

Collections touch pre-Covid levels

Particulars X Bucket Collection Efficiency

March 2021

X Bucket Collection Efficiency

December 2020

X Bucket Collection Efficiency

Feb 2020

Small Business Loans 99.60% 99.05% 99.41%
Vehicle Finance 98.85% 95.72% 96.50%
Micro Finance 98.70% 98.30% 98.50%