Q4 Results: Disbursed Fewer Microfinance Loans Due To Election, Says Equitas Holdings
Equitas Holdings Ltd. said it “cautiously” lent fewer microfinance advances due to the ongoing general election.
“Loan disbursements in our high-yielding products such as microfinance and small business loans was slow in the March quarter,” HK Raghavan , the lender’s Senior Vice President for retail assets, told BloombergQuint. “January has always been low historically due to a lot of holidays and we took a call to be cautious on disbursing micro-finance loans as elections were announced.”
Small business loans, he said, had also contributed to lower disbursement as products were usually cross-sold to microfinance borrowers.
Key Highlights (Q4, YoY)
- Net interest income rose 34.5 percent to Rs 333 crore.
- Profit after tax doubled to Rs 68.7 crore.
- Loan growth rose 43 percent—highest in FY19—despite giving fewer microfinance and small business loans during the quarter.
- Net slippages at Rs 1.8 crore versus Rs 19 crore.
Shares of the non-bank lender erased opening losses and rose 1.1 percent to Rs 126.55 apiece in today’s trade.
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