Equitas Small Finance Bank Q4 Review - Earnings Inline Despite One-Offs; Business Growth Steady: Motilal Oswal

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Equitas Small Finance Bank Ltd. reported in-line earnings for Q4 FY24 at Rs 2.08 billion (up 9.3% YoY). However, adjusted for one-off items, the bank reported a profit after tax of Rs 2.33 billion. Assets under management growth was steady at 21% YoY/3% QoQ to Rs 337 billion, driven by healthy traction in most segments (barring non-banking financial company and new CV). The management expects credit growth to remain robust at 25% YoY in FY25. Deposit growth was strong at 42% YoY/12% QoQ, led by healthy growth in term-deposits and current account and savings account. The CASA mix moderated 74 bp QoQ to 32%. Cost of funds rose 8 bp QoQ to 7.44%, while net interest margins dropped 20 bp QoQ to 8.17%. Slippages were elevated on one-time classification of the co-borrower non-performing asset. Gross/net non-performing asset ratios, thus, increased 8 bp/4 bp QoQ to 2.61%/1.17%. Provision coverage ratio was stable at 56%. We maintain our FY24E/FY25E EPS and estimate FY26 return on asset/return on equity of 2.0%/17.4%. Maintain Buy with a target price of Rs 125 (1.9x times FY26E adjusted book value)..Click on the attachment to read the full report:.AU Small Finance Bank Q4 Results Review - PPoP Inline; Asset Quality Improves: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Equitas Small Finance Bank Q4 Review - Earnings Inline Despite One-Offs; Business Growth Steady: Motilal Oswal

Asset quality ratios deteriorate slightly

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