Equitas Small Finance Bank — Poised To Tap Growth Opportunities In MFI, SFB Loans: HDFC Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Retail Research.Equitas Small Finance Bank Ltd. is one of the largest small finance banks in India and offers bouquet of products and services. The key business verticals include micro finance, small business loans, home loans and vehicle finance. It started as an MFI and gradually forayed into other businesses like small business loans, home and vehicle loans. The bank also has one of the best in class current account and savings account ratio (at 42%), supported by its digital acquisition strategy and fintech tie-ups. This along with high growth in the other businesses has helped the bank maintain high margins, despite transforming itself from a micro finance institution to a diverse services provider. Covid led weak economic scenario had impacted the MFI and small business segment. Equitas SFB’s performance had also deteriorated. There was a sharp spike in non-performing assets and due to higher provisions, the profitability of the bank was also impacted. However, we feel that going by the Q4 FY23 results, the worst is over and situation has improved with the economy picking up again and the rural demand on the rise, the growth outlook looks positive for the short to medium term. Reserve Bank of India in March 2022 issued new directions for microfinance lending and has eased microfinance regulations. For the long term we feel that the opportunity is huge as penetration of MFI and SFB loans in Indian market is still low..Click on the attachment to read the full report:.Max Financial Services Q4 Review - Growth Trends To Remain Healthy; VNB Margin To Moderate: Motilal Oswal.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Equitas Small Finance Bank — Poised To Tap Growth Opportunities In MFI, SFB Loans: HDFC Securities

For the long term, the opportunity is huge as penetration of MFI and SFB loans in Indian market is still low.

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