EQUITAS SMALL FINANCE BANK LIMITED ANNOUNCES Q4 FY 20 RESULTS

MUMBAI, 15 MAY, 2020 (TGN): Bank makes provisions in excess of RBI prescribed norms

COVID-19 provision at Rs. 996.30 Mn as of March 31, 2020

PAT for FY20 at Rs. 2,436.35 Mn as against Rs. 2,105.66 Mn in FY19, growth of 15.70%

Cost to Income* improved by 390 basis points from 70.30% in FY19 to 66.38% in FY20

FY20 Highlights:

1. Key Highlights for FY20:

• Advances^{^}:

o   Disbursement for FY20 grew 15.54% YoY to Rs. 99,110.73 Mn from Rs. 85,783.11 Mn in FY19

o   Advances^{^} as of March 31, 2020 grew 31.29% YoY to Rs. 1,53,669.45 Mn

• Liabilities:

o   Deposits excluding CD at Rs. 1,02,999.91 Mn, growth of 25.69% YoY

o   Retail TD at Rs. 38,112.87 Mn as on 31st March 2020, growth of 132.93% YoY

o   CASA stood at Rs. 22,082.13 Mn, CASA as a % of Total Deposits at 21.44%

• Key Ratios:

o   Cost to Income* improved by 390 basis points from 70.30% in FY19 to 66.38% in FY20

o   RoA^ and RoE# for FY20 at 1.39% and 9.84% respectively vs. 1.45% & 9.85% in FY19

^Advances = Gross Advances including IBPC issued |NIM = Net interest income as a % of avg. income earning assets | Total Deposits = Deposits excluding CD| *Cost to income ratio is calculated as a ratio of Operating expenses divided by Net Operating Income (Net Operating Income is a sum of net interest income and other income) ^RoA – ratio of the net profit for the period/year total average assets | ^#Ratio of the net profit for the period/ to the average shareholders’ Equity | ^$GNPA including IBPC

• Capital:

o   As of March 31, 2020 Total CRAR at 23.61% and Tier-I CRAR of 22.44%; Well above minimum regulatory requirements of 15% and 7.5%

o   Tier II Capital at 1.17%

• Liquidity:

o   Bank has undertaken Inter-Bank Participation Certificates (IBPCs) with a mix of PSL/Non-PSL advances which further enhances the liquidity of the Bank

o   Liquidity Coverage Ratio (LCR)^$ as on 31.03.2020 at 132.2% much above the minimum regulatory requirement of LCR at 90%

2. Profit & Loss:

• Net Interest Income for FY20 at Rs. 14,953.06 Mn as against Rs. 11,517.34 Mn in FY19, growth of 29.83%, NIM* at 9.11%
• PBT before provisions and write off for FY20 at Rs. 5,975.79 Mn as against Rs. 4,261.45 Mn in FY19, growth of 40.23%
• Provisions for FY20 at Rs. 2,466.39 Mn, including Rs. 996.30 Mn COVID-19 provision (including Rs. 29.8 Mn representing the minimum provision of 10% on standard assets availing moratorium where asset classification benefit is extended. The provision held by banks are in excess of the RBI prescribed norms.
• PAT for FY20 at Rs. 2,436.35 Mn as against Rs. 2,105.66 Mn in FY19, growth of 15.70%
• Cost to Income* improved by 390 basis points from 70.30% in FY19 to 66.38% in FY20
• RoA^ and RoE# for FY20 at 1.39% and 9.84% respectively vs. 1.45% & 9.85% in FY19

3. Balance Sheet:

• Advances^{^} as of March 31, 2020 grew 31.29% YoY to Rs. 1,53,669.45 Mn

o   Micro Finance grew by 17.81% YoY from Rs. 30,696.02 Mn in FY19 to Rs. 36,161.60 Mn in FY20

o   Small Business Loans (Incl. HF) grew by 37.19% YoY from Rs. 45,771.21 Mn in FY19 to Rs. 62,794.36 Mn in FY20

o   Vehicle Finance grew by 27.41% YoY from Rs. 29,511.97 Mn in FY19 to Rs. 37,599.72 Mn in FY20

o   MSE Finance grew by 270.12% YoY from Rs. 1,808.61 Mn in FY19 to Rs. 6,694.10 Mn in FY20

o   Corporate Loans grew by 79.43% YoY from Rs. 4,559.65 Mn in FY19 to Rs. 8,181.19 Mn in FY20

^Advances = Gross Advances including IBPC issued |NIM = Net interest income as a % of avg. income earning assets | Total Deposits = Deposits excluding CD| *Cost to income ratio is calculated as a ratio of Operating expenses divided by Net Operating Income (Net Operating Income is a sum of net interest income and other income) ^RoA – ratio of the net profit for the period/year total average assets | ^#Ratio of the net profit for the period/ to the average shareholders’ Equity | ^$GNPA including IBPC | $ – LCR as on 31.03.2020

• Disbursements for the year grew 15.54% YoY to Rs. 99,110.73 Mn
• 75.39% of the overall advances^{^} is secured loans

4. Liabilities & Branch Banking:

• Deposits excluding CD at Rs. 1,02,999.91 Mn, growth of 25.69% YoY
• Retail TD at Rs. 38,112.87 Mn as on 31st March 2020, growth of 132.93% YoY
• CASA stood at Rs. 22,082.13 Mn, CASA as a % of Total Deposits at 21.44%

5. Asset Quality:

• GNPA^$ at 2.72% in FY20 as compared to 2.53% in FY19
• NNPA at 1.66% in FY20 as compared to 1.44% in FY19. ENDS