Equitas Small Finance Bank Q1 Review - Elevated Provisions Dent Profitability: Axis 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..Axis Securities Report.Equitas Small Finance Bank Ltd.'s Q1 FY23 performance was below our estimates owing to lower other income, higher opex, and elevated provisions resulting in a miss on profit after tax. Disbursements stood at Rs 3,238 crore (up 156% YoY, flat QoQ) aiding loan growth revival. Advances grew by 22% YoY, with growth driven primarily by home loans (up 79% YoY), microfinance (up 28% YoY), new commercial vehicles (up 28% YoY) and small business loans plus agri (up 18% YoY). With the business activity picking up, the on-ground situation improving, and growth visibility emerging, Equitas SFB reiterated its growth guidance of clocking advances of ~30% (pre-Covid growth rate) in FY23. The traction on the liability franchise remained strong aided by a strong current account and savings account deposits growth (up 55% YoY) with the CASA ratio remaining stable at ~52% QoQ..Click on the attachment to read the full report:.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 Q1 Review - Elevated Provisions Dent Profitability: Axis Securities

Equitas Small Finance Bank Q1 Review - Elevated Provisions Dent Profitability: Axis Securities

Choose a plan