Equitas Small Finance Bank (SFB) rose 1.10% to Rs 67.05 after the bank's total deposits including certificate of deposits jumped 25.79% to Rs 40,738 crore as on 31 December 2024 as against Rs 32,385 crore recorded as on 31 December 2023.
On a quarter-on-quarter (QoQ) basis, total deposits rose 2.21% from Rs 39,859 crore posted on 31 September 2024.Total gross advances increased 13.94% year on year (YoY) and 3.58% QoQ to Rs 37,345 crore as on 31 December 2024.
The total gross advances include an Inter-Bank Participation Certificates (IBPC)/Securitized/Assigned portfolio amounting to Rs 1,228 crore as of 31 December 2024, down from Rs 1,398 crore in September 2024.
As of 30 September 2024, CASA (Current Account Savings Account) deposits stood at Rs 11,668 crore, registering a growth of 9.79% YoY and down 4.24% QoQ. The banks CASA ratio was at 29% as on 31 December 2024, a decline from 33% posted as on 31 December 2023.
Cost of funds increased to 7.49% in Q3 FY25 from 7.36% in Q3 FY24 and 7.50% in Q2 FY25.
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The non-microfinance portfolio of the bank, which now forms 86% of the total advances, has grown by 20% YoY. The bank has consciously slowed down disbursements in microfinance, leading to a 11% drop in advances YoY. The stress in microfinance is finally showing early signs of stability, with the collection efficiencies of Q3FY25 being at the same level as Q2FY25. With the many initiatives taken by the bank, along with the tightening of lending discipline by the industry SRO, we expect the collection efficiency to improve in the fourth quarter, the bank stated in an exchange filing.
The bank has successfully raised Rs 500 crore of Tier II bonds in December 24. The banks capital adequacy is now healthy at above 20%.
Equitas Small Finance Bank offers products and services to meet the needs of individuals with limited access to formal financing channels, as well as affluent and mass affluent small & medium enterprises (SMEs) and corporations.
The bank reported net profit tumbled 93.5% to Rs 12.88 crore in Q2 FY25 as against Rs 198.14 crore recorded in Q2 FY24. Total income stood at Rs 1,793.80 crore in the second quarter of FY25, registering a growth of 16.45% on YoY basis.
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