Equitas Small Finance Bank Q4 Review - Improving Collection Efficiency, Business Growth: Motilal Oswal
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Motilal Oswal Report
Equitas Small Finance Bank Ltd. reported a profit after tax of Rs 1.1 billion (higher than our estimate), led by higher priority sector lending certificates fee income and lower provisions.
Non-micro finance institution assets under management growth stood at 25% YoY, while the micro finance institution portfolio declined further.
On the liability front, deposit growth momentum was strong, with the current account and savings account ratio improving to 34%.
On the asset quality front, higher write-offs (Rs 1.7 billion) in the MFI portfolio resulted in an improvement in asset quality ratios.
Collection efficiency for March 2021 improved to 108.5% (versus 105.4% in December 2020).
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