 "Equitas SFB to add 409 more liability branches by FY 2018 Q1")
Equitas Small Finance Bank (ESFBL) has said it started operations with three new liability branches and plans are underway to add the balance 409 by the first quarter of financial year 2018.
ESFBL commenced its banking operations on September 5, 2016, with three branches in Chennai. It is the first private sector bank from Tamil Nadu to commence operations post Indian Independence.
ESFB is a diversified financial services provider focused on individuals and micro and small enterprises. The focus customer segment includes low income groups and economically weaker individuals operating small businesses.
S Bhaskar, executive director & chief executive officer, Equitas Holdings Limited, said that "as we have transformed into the bank, we continue to remain focused on the segments not sufficiently serviced by the mainstream financial system. To a large percentage of our borrowers, we are the only lenders. We hope to impact about five per cent of Indian households by 2025".
To enable physical support to its millions of customers, Equitas plans to have a network of business correspondents at branch level and to take banking services right to the doorstep of its clients. The company has deployed information technology (IT) and digital solutions to make its banking experience a great experience for its mass and mass-affluent customers.
Total assets under management of ESFBL during the second quarter ended financial yeat 2017 stood at Rs 7,079 crore and networth stood at Rs 1,960 crore. The bank's profit after tax (PAT) stood at Rs 47.1 crore.
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One-time bank transition impact is on account of pre-closure charges on term loans repaid, non-performing asset transition to 90 day norms, negative carry on cash held prior to bank conversion, while credit is on account of standard assets provision reversal on incremental asset growth in first half of 2016-17 over the fourth quarter of financial year 2016.
Recurring impact is on account of staff cost, rent and related costs to the extent incurred, depreciation on core banking and related IT assets, negative carry on statutory liquidity ratio and cash reserve ratio, advertisement and brand promotion etc, while credit is on account of reversal of treasury income.
Equitas said that during the second quarter, total impact on PAT was Rs 24.05 crore, including one time impact, net of tax of Rs 13.41 crore and recurring impact, net of tax of RS 10.64 crore. During the first quarter, total impact on PAT was Rs 3.27 crore, which was recurring impact, net of tax.