Equitas Holding Ltd

Interesting interview on how the bank will look like going forward:-

1. Guiding for AUM growth of 25-30% per annum.

2. In couple of years AUM should reach 45,000+ crores.

3. NIM’s- as new products get introduced with slightly higher ticket size, overall NIM might come down a bit due to newer products. Overall spreads will remain the same. NIMs should be close to 8.5% in 2-3 years. NIM is a factor of product mix that we have. New products like personal loan or credit cards etc.

4. Microfinance will come down to 14% over the next few years.

5. Present in small commercial vehicles as these address the local environment. Think it’s less risker than financing long haul commercial vehicles.

6. GNPA is at pre covid levels. Credit cost will come back to the pre covid level at 1.2-1.25% level.

7. Fairly under leveraged, going forward increasing leverage will help ROE to increase further.

8. Restructuring was high as customer segment was such. Haven’t seen much pain from RSL book, today it is below 1%. Against RSL book, have 88% covered under provisioning.

Equitas Small Fin Bank’s PN Vasudevan On Q4FY23 Earnings & Loan Growth Outlook | CNBC-TV18