Equitas Small Finance Bank (EQUITASBNK) Q2 23/24 earnings summary

Executive summary

• Advances grew 37% year-over-year and 6% sequentially, reaching Rs. 31,229 Cr in Q2FY24, with strong disbursement growth across key segments.

• PAT for Q2FY24 was Rs. 198 Cr, up 70% year-over-year and 3.63% sequentially, with RoA at 2.03% and RoE at 14.62%.

• Unaudited financial results for the quarter and half-year ended September 30, 2023, were approved by the Board and reviewed by statutory auditors, with no material misstatements identified.

• Asset quality improved, with GNPA at 2.12% (down 170 bps YoY) and NNPA at 0.91% (down 102 bps YoY); additional provisions of Rs. 28.04 Cr made.

• Digital banking initiatives expanded, with significant growth in digital deposits and transaction volumes.

Financial highlights

• Net Interest Income rose 26% YoY and 3% QoQ to Rs. 766 Cr; other income grew 40% YoY and 8% QoQ.

• Total income for Q2 FY24 was ₹1,54,036.72 lakh, up from ₹1,14,739.41 lakh in Q2 FY23.

• Net profit for Q2 FY24 stood at ₹19,813.82 lakh, compared to ₹11,642.13 lakh in Q2 FY23.

• Total deposits increased 42% YoY to Rs. 30,839 Cr; CASA ratio at 34%, with term deposits growing 82% YoY.

• Operating expenses increased 24% YoY, reflecting continued investment in technology and new products.

Outlook and guidance

• Focus remains on sustaining credit growth, improving asset quality, and expanding digital offerings.

• The bank continues to follow RBI guidelines and implements regulatory changes prospectively.