Equitas SFB Share Price Target Forecast 2022, 2023, 2025, 2030

24 November 2021

With a co-branded credit card, HDFC Bank will get into Equitas SFB’s client base.

With the launch of two co-branded credit cards on Tuesday, HDFC Bank hopes to tap into the client base of Chennai-based Equitas Small Finance Bank (SFB). In the next 12-18 months, Equitas SFB hopes to issue cards to 20% of its client base.

The Excite credit card, which has a credit limit of between Rs 25,000 and Rs 2 lakh, and the Elegance credit card, which has a credit limit of more than Rs 2 lakh, will be available.

Around five lakh clients would be eligible for the card, according to Murali Vaidyanathan, Senior President and Country Head For Branch Banking Liabilities, Products, and Wealth, Equitas SFB. “At the product penetration level, at least two out of every ten clients should have our co-branded card in a year or 18 months — that is the route we are taking inside the Qualified Base.” This translates to a 20-25 percent penetration of the eligible base, which is growing by the month,” he explained.

The co-branded cards will be underwritten using the same methods and algorithms that HDFC Bank uses for its other clients. The overdue amount will be recorded in HDFC Bank’s accounts as well.

HDFC Bank’s Group Head – Payments, Consumer Finance, Digital Banking, and IT, Parag Rao, stated the bank plans to work with Equitas SFB, a microfinance firm, to address the low penetration of electronic payment instruments in India and develop the industry. , “We’ve concluded that collaborating with competitors isn’t a fault, but rather a strength,” Rao added. “This includes our approach of partnering with other banks.”

“Our aim at HDFC Bank is to develop the market as a market leader, and we believe in partnerships and collaborations, where two like-minded organisations can build a co-created product,” he added. come together in order to be presented Only a select set of customers will help to expand the market.

According to Reserve Bank of India data, HDFC Bank leads the credit card industry in terms of number of cards applied, with 1.5 crore outstanding at the end of September. Due to regulatory constraints on the issuing of new credit cards between December 2020 and August 2021, the bank’s additional issuances were hampered. ICICI Bank, a competitor, led the way in new issuances throughout the eight-month period. HDFC Bank is currently attempting to reclaim its position as a market leader. The lender indicated in August that it expected to recoup its stake in the following three to four quarters.

Visa will be the one to issue the co-branded cards. TR Ramachandran, Visa’s Group Country Head for India, Sri Lanka, and Bangladesh, claimed the country’s credit card penetration is approximately 6% in terms of card numbers but barely 3-4 percent in terms of credit card holders.

“On the credit side, there is a huge nascent market for everyday digital payments, as credit is becoming a day-to-day convenience rather than just luxuries and discretionary goods, which means daily expenses—like groceries, transportation, especially online—are becoming a day-to-day convenience rather than just luxuries and discretionary goods.” “As a result, the distinction between online and physical payments blurs,” Ramachandran added.

Application Programming Interface (API) banking will be used to issue the cards. As a result, no data will travel from Equitas SFB to the HDFC Bank system, according to Vaidyanathan. “We’ll defer to the rules engine’s decision.” “At first sight, we’ll pre-qualify the accounts and then start selling them to our customers,” he added.

Equitas will next begin identifying new-to-bank consumers based on the CIBIL ranking. “HDFC Bank handles solely the card side of the issue and will have the card related facts,” Vaidyanathan explained, “and nothing will be reflected or seen from the liabilities or transactions side.”

Financialexpress.com is the source for this information.

30 October, 2021

In the September 2021 quarter, Equitas Small Finance Bank’s standalone net profit fell 60.01 percent.

Equitas Small Finance Bank’s net profit fell 60% to Rs 41.2 crore due to greater provisioning to cover bad loans.

In the same quarter a year before, net profit was Rs 103 crore.

The bank’s operational profit declined 7.6% to Rs 195 crore from Rs 211 crore in the previous quarter. The provision was 84 percent greater, at Rs 138 crore, than it had been previously, at Rs 75 crore.

“Things are returning back to normal,” managing director PN Vasudevan told ET. This quarter has witnessed the biggest disbursal ever. During the period under review, the bank disbursed Rs 3145 crore.

At the end of September, the company’s loan book had increased by 13% to Rs 18,978 crore, with 81.44 percent of advances secured.

The institution has restructured loans totaling Rs 1,400 crore, or around 7% of total credit. The revised book has a provision of Rs 196 crore.

At the end of September, it had a gross non-performing asset ratio of 4.64 percent, up from 4.58 percent three months prior. Net NPAs were 2.37 percent, up from 2.29 percent in the previous quarter.

“Collection efficiency has increased, resulting in a reduction in late cases ranging from one to ninety days,” Vasudevan added.

EconomicsTimes.com is the source for this information.

October 19, 2021.

Equitas Small Finance Bank would use a QIP to raise up to Rs 1,000 crore.

Equitas Small Finance Bank (SFB) intends to raise up to Rs 1,000 crore in equity capital by selling shares to institutional investors in order to fulfil MPS requirements. The premium on the shares is included in the amount to be raised.

The business’s board of directors has authorised this upgrade, which is being done to fulfil the Securities and Exchange Board of India’s (SEBI) standards by raising equity through Placement of Qualified Institutions (QIP), according to the firm. BSE has been notified.

On the BSE, the stock finished at Rs 67.3 per share on Monday, a rise of approximately 1%. At the end of June, its capital adequacy ratio was 24.07 percent.

The public share in the listed firms is anticipated to be at least 25%. However, as of June, the promoters owned roughly 81 percent of the bank.

On November 2, 2020, the bank made its stock market debut. Equitas SFB was prevented from building new branches by the Reserve Bank of India last year after it missed the deadline to list its shares on stock markets, which was a fundamental licencing condition. The remuneration of SFB’s Managing Director and CEO has also been put on hold by the RBI. Both restrictions were lifted after the listing.

Meanwhile, its deposits increased by 40% year over year to Rs 18,094 crore from Rs 12,901 crore in Q2FY22 the previous year. In September, low-cost deposits (current account and savings account (CASA)) accounted for 45 percent of total deposits, up from 25 percent a year before.

Its advances increased 13% year on year to Rs 18,981 crore from Rs 16,731 crore the previous year. In the second quarter, disbursements increased by 65% to Rs 3,137 crore.

EconomicsTimes.com is the source for this information.

30 September 2021

Under the ESOP, Equitas Small Finance distributes around 6.09 lakh equity shares.

The Stakeholders Relationship Committee (SRC) of the Board of Directors of Equitas Small Finance Bank has granted option grantees who have exercised their Employee Stock Options Rs.10/- each on September 28, 2021. The allotment of,09,212 equity shares was approved.

According to a regulatory filing, the bank is in the process of applying for listing of the aforesaid shares on the NSE and BSE to complete the remaining requirements.

As a result, the Bank’s paid-up share capital rises from Rs.1144,58,19,570 to Rs.1145,19,11,690.

Equitas Small Finance Bank was trading at Rs 63.15 per share on the BSE at 10:12 a.m., up 0.72 percent.

On Thursday, the stock had ended at Rs 62.70 a piece.

Indiainfoline.com is the source for this information.

6 September, 2021

The RBI is keeping an eye on the Google-Equitas Small Finance Bank deposit transaction.

The Reserve Bank of India (RBI) is keeping an eye on Google Pay’s latest partnership with Equitas Small Finance Bank. According to a report in Business Standard, India’s central bank is studying the effect and consequences of huge internet companies joining the fintech sector.

Last week, the two businesses launched a partnership, allowing Google Pay customers to make fixed deposits with the bank directly through the payment gateway.

“In an industry first, users may book high-interest rate FDs totally online using the Google Pay app — without the requirement to create a savings account with Equitas Bank on their own.” As a result, Google Pay customers can book FDs from the comfort of their own homes, ensuring a simple, secure, and hassle-free experience,” the firm said in a statement.

Despite the fact that the purchase is completely within the current laws and regulations, sources told Business Standard that Google’s abrupt foray into the deposit market has placed the RBI on notice.

In the financial industry, the RBI has been hesitant of offering exemptions to huge tech corporations like Google, Facebook, Amazon, Apple, and Microsoft. The RBI had already highlighted the risks to India’s financial stability from greater inclusion of such tech firms in the financial services sector in its bi-annual Financial Stability Report.

Google Pay, which is exploiting its position as a major UPI supplier to frighten other banks and render their applications obsolete, is one possibility. Other huge corporations may want to follow Google’s lead and enter the market, something the RBI does not want to see.

Equitas, its technology vendor Setu, and Google, for their part, have all stressed that the partnership is limited to utilising Google Pay as a distribution channel. According to the guidelines, Google does not get a commission for the new FD, nor does it have any control over the FD’s conduct, and the bank handles the KYC. In brief, Equitas uses the Google Pay platform to deliver its services and attract new customers.

“As Google Pay, our role is limited to providing these merchants with a surface where Google Pay users can discover and benefit from these offerings – be it credit products, insurance, or otherwise,” writes Sajith Sivanandan, Google APAC’s business head for payments and business unit, in a new blog post.

While the RBI is keeping a close eye on developments, the central bank’s next report on digital lending will likely include more details about the central bank’s views on collaborations with significant tech corporations for fintech services.

CNBCTV18.com is the source of this information.

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