Equitas Small Finance Bank (EQUITASBNK) Q4 22/23 earnings summary

Executive summary

• FY23 advances grew 35% YoY to ₹27,861 crore and deposits rose 34% to ₹25,381 crore; PAT more than doubled to ₹574 crore.

• The reverse merger with Equitas Holdings became effective in February 2023, completing a key licensing-related structural change.

Financial highlights

• Net interest income increased 25% YoY to ₹2,544.72 crore; other income rose 25% to ₹669.58 crore and net income reached ₹3,214.30 crore.

• Operating profit was ₹1,176.00 crore and PBT ₹768.80 crore; PAT was ₹573.59 crore, up 104% from ₹280.73 crore in FY22.

• Operating expenses rose to ₹2,038.30 crore from ₹1,704.14 crore, reflecting investment in staff, technology and brand visibility; cost-to-income improved to 63.41% from 66.15%.

• Other income included ₹70.14 crore profit on sale of NPAs to an ARC; ₹11.24 crore excess provision was reversed following the sale.

Outlook and guidance

• Planned consumer finance expansion includes credit cards and personal loans; AD-1 licensing supports planned forex cards, FCNR deposits and remittance offerings.

• Management described the next phase as focused on stable, sustainable and scalable growth, supported by digital operations, risk management and a retail deposit franchise.

• Industry commentary expects FY24 Indian credit growth broadly in line with GDP growth; India GDP growth projections cited were 5.9%–6.5%.