Moneycontrol Pro: Equitas Small Finance Bank in focus, here's why

In a few ideas for profit from Moneycontrol Pro, Madhuchanda Dey of Moneycontrol.Com spoke about a stock that she is tracking closely, Equitas Small Finance Bank.

The stock price has been largely flat in the past three months, asset quality picture had improved in the last reported quarter and there has been an improving trend in collection efficiency as well. Consequently the bank has lowered its credit cost guidance for the future.

On the ground, growth seems to be picking up as evident from the sharp pickup in disbursement as per the provisional figures of Q4. Equitas has put in substantial efforts in diversifying and derisking its asset book away from unsecured microfinance. At the end of 2021, 81 percent of the book was secured lending. Despite having a predominance of secured assets, interest margins have sustained and improved as Equitas saw steady decline in the cost of funds.