Equitas Small Finance Bank Financial Q3 FY23 Results

Chennai, February 09, 2023: The Board of Directors of Equitas Small Finance Bank Limited at its assembly held in the present day, accepted the audited monetary outcomes for quarter and 9 months ended December 31, 2022

Highest quarterly PAT of Rs. 170 Cr in Q3FY23 vs Rs. 108 Crs in Q3FY22

Highest quarterly disbursement at Rs. 4,797 Crs, progress of 68% YoY

Gross Advances as of Q3FY23 was at Rs. 24,915 Cr, a progress of 27% YoY

RoA & RoE for the quarter at 2.21% and 14.94%

1. Key Highlights for Q3FY23:

• Q3FY23 was a robust quarter throughout key efficiency indicators delivering sustainable mortgage and deposit progress, secure margins, enhancing asset high quality

o Loan Growth – 27% YoY | Deposit Growth – 31% YoY

o 93bps enchancment in GNPA YoY

o Highest ever PAT at Rs. 170 Crs

o Improved return ratios with RoA at 2.21% and RoE at 14.94%

• PPoP expanded to three.62% from 3.52% YoY as productiveness improved throughout product segments
• Asset high quality continues to enhance with DPD buckets normalized with covid impression waning off and restructured e-book contracting additional. 1-90 DPD stands at 7.53% in Q3FY23 as in comparison with 10.43% in March’22 and 5.51% in March’20 (Pre-Covid’19)
• Bank has utilized Rs. 36 Crs of Covid Restructured Loan (RL) normal provisions in the course of the quarter and continues to carry Rs. 60 Crs in Standard RL provisions which can be utilized within the following quarters

2. Business Highlights:

Asset Updates:

• Q3FY23 disbursement at Rs. 4,797 Crs, progress of 68% YoY.
• Strong disbursement throughout all product segments, with the Bank’s flagship product – SBL clocking a YoY disbursement progress of 73%.
• Advances as of Q3FY23 was at Rs. 24,915 Cr, a progress of 27% YoY

Liabilities:

• Total deposits grew 31% YoY to Rs. 23,393 Crs
• CASA deposit grew 19% YoY to Rs. 10,817 Crs. CASA ratio stood at 46% as of December 2022
• Term Deposits grew 43% YoY to Rs. 12,576 Crs
• Retail Term Deposits grew 18% YoY to Rs. 8,270 Crs. Retail Term Deposits contribute 66% of whole time period deposits.

o NIM stays secure and wholesome at 9.01%

o Cost to Income at 63.95% in Q3FY23 as in comparison with 66.58% in Q2FY23 as in contrast and 64.67% in Q3FY22

o RoA and RoE for Q3FY23 at 2.21% and 14.94%

o As of Dec 31, 2022, Total CRAR at 24.28% | Tier I at 23.74%, and Tier II at 0.54%

o The Bank’s Certificate of Deposit (CD) program for Rs. 500 Crore has the very best ranking from at CRISIL A1+

o The Bank maintains ‘surplus’ liquidity within the type of High-Quality Liquid Assets (HQLA). Liquidity Coverage Ratio (LCR) as on 31.12.2022 is 216%

o Profit on sale of Investments for the quarter is Rs. 7.01 Crore and there was no MTM depreciation on Investments for the quarter

3. Profit & Loss:

o Net Interest Income for Q3FY23 at Rs. 647 Cr as in opposition to Rs. 541 Cr in Q3FY22, a progress of 20% YoY. NIM’s secure at 9.01%

o Pre Provisioning Operating Profit (PPoP) for Q3FY23 grew 24% YoY to Rs. 279 Cr as in opposition to Rs. 225 Cr in Q3FY22

o PAT for Q3FY23 grew 57% YoY to Rs. 170 cr as in opposition to Rs. 108 Cr in Q3FY22

4. Asset Quality & Provisions:

o Annualised Credit Cost for Q3FY23 at 0.84%

o GNPA on advances [including advances sold under IBPC] at 3.46% in Q3FY23 as in comparison with 3.82% in Q2FY23 and 4.39% in Q3FY22

o NNPA on advances [including advances sold under IBPC] at 1.73% in Q3FY23 as in comparison with 1.93% in Q2FY23 and a couple of.38% in Q3FY22

o Provision protection ratio at 50.84%

Commenting on the quarterly efficiency,Mr. P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank stated: “The impact of Covid on the financial institution’s financials has waned. Many initiatives of the Bank to create a secure, sustainable, and scalable financial institution have began yielding outcomes and the efficiency of the three^rdquarter displays the identical.

Various tasks on the digital facet are anticipated to grow to be operational over the following few quarters. As they go stay, we anticipate additional enchancment in each productiveness and effectivity in addition to in producing newer enterprise fashions.”