Equitas Small Finance Bank Q4 Review - Well Positioned To Tide Through Covid 2.0: Axis Securities
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Axis Securities Report
Equitas Small Finance Bank Ltd. posted mixed bag results.
On the operational front, disbursements stood at Rs 2,535 crore (up 5% year-on-year, up 3% quarter-on-quarter) driven by a growth in the small business loans and vehicle finance book.
Excluding micro finance institution book, disbursement growth was approximately 18% YoY.
Assets under management stood at Rs 17,925 crore, registering a QoQ/YoY growth of 3%/17%, respectively.
The share of microfinance book contracted to 18% of AUM from ~20% in Q3 FY21, which we believe is a prudent approach given the high level of uncertainty in Covid 2.0.
The ‘nil’ exposure to the troubled states of West Bengal and Assam provides relief.
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