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Equitas Holdings Ltd touched a fresh 52-week high of Rs 124.7 after they rallied 12 per cent on the BSE in the intra-day trade on Thursday. The stock has surged 33 per cent in two days after Equitas Small Finance Bank (SFB) released its business update for June quarter (Q1FY22) on Wednesday. Equitas Holdings held 81.98 per cent stake in Equitas SFB as on March 31, 2021.
In the morning trade, Equitas Holdings was up 6 per cent at Rs 118.45 as compared to a 0.25 per cent decline in the S&P BSE Sensex. Trading volumes on the counter jumped over 6-fold with a combined 18.99 million shares have changed hands on the NSE and BSE till the time of writing of this report. The stock was trading close to its 2-year high and its highest level since July 18, 2019.
For Q1FY22, Equitas SFB reported 14.6 per cent year-on-year (YoY) growth broadly flat quarter on quarter (QoQ) in gross advances to Rs 17,800 crore. The muted trends were primarily attributable to lockdowns in core states/territories, which resulted in subdued disbursements of Rs 1,270 crore (nearly 50 per cent QoQ decline). However, on a YoY basis, it reported a 125 per cent increase.
On the asset quality front, collection efficiency trends declined sharply to 77.8 per cent in May’21, relative to 108.5 per cent in Mar’21 and 105.2 per cent in Apr’21. However, they showed some recovery to 83.5 per cent in June’21.
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