Q1 2025 Equitas Small Finance Bank Ltd Earnings Call Transcript
Key Points
- Retail term deposits grew 47% year on year, indicating strong deposit growth.
- Product segments like housing and used cars have shown significant growth at 35% and 59% respectively.
- Small business loans have grown by about 27% year on year, showing robust performance in this segment.
- Investments in technology, including new CRM and Selfie Loan app, are progressing well and showing strong adoption.
- The bank remains healthy on liquidity with a CD ratio of around 86.75%.
- First quarter disbursement was quite low, with April being particularly weak.
- Credit costs spiked due to a one-time correction in the provision coverage ratio and weaker collections.
- Slippages during the quarter were 4.49%, above the comfort level of 4%, driven by micro-finance and commercial vehicles.
- Microfinance portfolio loan growth was just about 6%, indicating a slowdown in this segment.
- The net interest margin (NIM) dropped by 20 basis points compared to the previous quarter.
Ladies and gentlemen, good day, and welcome to the earnings conference call of Equitas Small Finance Limited financial performance for Q1 FY25. We have with us today Mr. P.N. Vasudevan Managing Director and Chief Executive Officer; Mr. Sridharan N, Chief Financial Officer; Mr. Murali Vaidyanathan, Senior President and Country Head, Branch Banking, Liabilities, Product and Wealth; Mr. Rohit Phadke, Senior President and Head Assets; Mr. Natarajan M, President and Head Treasury; Mr. Dheeraj Mohan, Head Strategy and IR.
(Operator Instructions) Please note that this conference is being recorded. And I would now like to hand the conference over to Mr. P.N. Vasudevan. Thank you and over to you, sir.
Thank you. Good evening to all of you. I'm sorry, we are a little bit behind schedule due to some technology glitch. I hope you can hear me loud and clear. I hope you had the time to go through our results.
First, let me start talking
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