Equitas Small Finance Bank (Equitas SFB) has marked its 9th anniversary with the launch of an upgraded mobile banking application, 'Equitas 2.0', signaling a significant push towards digital banking and enhanced customer convenience.

Key Features of Equitas 2.0

The revamped mobile banking app introduces a host of new features designed to provide a comprehensive banking experience:

• Online account opening for new customers
• Fixed deposit booking and management
• Recurring deposit management
• Access to IPOs and mutual funds
• Card management
• Utility and bill payments
• Goal-based deposits
• Reward redemption
• Service request tracking and management

Leadership Perspectives

Vasudevan P N, MD & CEO of Equitas Small Finance Bank, expressed enthusiasm about the launch, stating, "We at Equitas are thrilled to announce the launch of our new Mobile Banking App, which strengthens our presence in the digital space. The launch of this app demonstrates the dedication of our technology team and further consolidates our vision of providing banking with convenience."

Balaji Nuthalapadi, Executive Director - Technology & Operations, shared the bank's ambitious plans for the platform: "With the launch of our new Mobile Banking App, we are taking a significant step towards building a true super app for our customers. Over a period of time, this platform will seamlessly integrate across the customer lifecycle – from e-commerce to ticketing & entertainment – empowering customers with a single destination for their evolving needs."

Future Developments

Equitas SFB's vision extends beyond traditional banking services. The bank plans to evolve the Equitas 2.0 platform into a comprehensive super app, integrating e-commerce, ticketing, and entertainment services. This strategic move aims to position Equitas as a one-stop solution for customers' diverse financial and lifestyle needs.

About Equitas Small Finance Bank

Equitas Small Finance Bank, one of the largest Small Finance Banks in India, focuses on providing financial services to individuals with limited access to formal financing channels, as well as affluent and mass-affluent segments, Small & Medium Enterprises (SMEs), and corporates. The bank's strategy centers on offering credit to unbanked and underbanked micro and small entrepreneurs, developing products to address the growing aspirations at the 'bottom of the pyramid', supported by granular deposits and value-for-money services.

As Equitas Small Finance Bank celebrates nearly a decade of advancing financial inclusion, the launch of Equitas 2.0 represents a significant milestone in its digital transformation journey, reinforcing its commitment to innovative and accessible banking solutions.

Equitas Small Finance Bank Limited (ESFB) has reported a net loss of 2.2 billion rupees, marking a significant downturn from the profit of 258 million rupees recorded in the same period last year. The bank's financial results reveal a challenging quarter characterized by increased provisions and muted growth in certain segments.

Key Financial Highlights

• Net Loss: The bank posted a net loss of 2.2 billion rupees, compared to a profit of 258 million rupees in the corresponding period.
• Gross Advances: Grew by 8% year-on-year (YoY) to 376.10 billion rupees, with non-microfinance advances growing at 18% YoY.
• Deposits: Total deposits increased by 18% YoY to 443.79 billion rupees.
• Asset Quality: Gross Non-Performing Assets (GNPA) ratio slightly decreased to 2.82% from 2.89% in the previous quarter.
• Net Interest Margin (NIM): Declined to 6.55% from 7.97% in the corresponding period.

Factors Contributing to the Loss

The significant loss can be attributed to two main factors:

1. Additional Provisions: The bank made a one-time additional standard asset provision of 1.85 billion rupees for its microfinance portfolio.
2. Change in Provisioning Norms: An additional NPA provision of 1.45 billion rupees was made due to changes in provisioning norms.

Business Performance

Despite the overall loss, some segments of the bank's business showed resilience:

• Vehicle Finance: The portfolio crossed 95 billion rupees during the quarter.
• Used Car Advances: Crossed 20 billion rupees, registering a growth of 50% YoY.
• Used Commercial Vehicle (CV) Advances: Grew by 26% YoY.

Deposit Growth and CASA Ratio

The bank's deposit base showed strong growth:

• Overall Deposits: Grew by 18% YoY and 3% quarter-on-quarter (QoQ).
• CASA Ratio: Remained stable at 29%.
• Current Account Balances: Grew by 92% YoY.

Management Commentary

P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank, stated, "The bank has made additional provisions to strengthen its balance sheet. While this has impacted our profitability for the quarter, we believe it positions us better for future growth. Our focus remains on expanding our secured loan portfolio and improving asset quality."

Capital Adequacy and Liquidity

The bank's capital position remained strong:

The bank's Liquidity Coverage Ratio (LCR) stood at a comfortable 209.5%.

Outlook

While the quarter's results reflect short-term challenges, Equitas Small Finance Bank's management expressed confidence in the bank's long-term prospects. The focus on growing secured loans, expanding the deposit base, and maintaining a strong capital position are expected to drive future performance.

Investors and stakeholders will be closely watching the bank's performance in the coming quarters to see how it navigates the current challenges and returns to profitability.