About
Equitas Small Finance Bank Ltd
Equitas Small Finance Bank Limited was incorporated on June 21st, 1993 as V.A.P. Finance Private Limited and later renamed as Equitas Finance Private Limited in August, 2011. In 2011, Equitas Holdings Limited acquired the Company. The Company's name was subsequently changed to Equitas Finance Limited in September 2015 consequent to it becoming a Public Limited Company.
Equitas Bank is one of the largest small finance banks in India. As a new-age bank in one of the fastest growing economies, it offers a bouquet of products and services to meet the needs of its customers - individuals with limited access to formal financing channels, Micro, Small & Medium Enterprises (MSMEs) and corporates. The Bank's firmly entrenched strategy focuses on providing credit to the unbanked and underbanked micro and small entrepreneurs, developing products to address growing aspirations at the bottom of the pyramid', fueled by granular deposits and value for money' banking relationships.
The Bank's asset products are suited to a range of customers with varying profiles, which include provision of Small Business Loans (SBLs) comprising loan against property, housing loans, and agriculture loans to micro entrepreneurs, microfinance to joint liability groups predominantly comprising women, used and new commercial vehicle loans to drivers and micro entrepreneurs, MSE loans to proprietorship, and loans to non-banking financial companies (NBFCs). On the liability side, the Bank's target customers comprise mass and mass-affluent individuals to whom it offers current accounts, salary accounts, savings accounts, and a variety of deposit accounts. In addition, the Bank provides noncredit offerings comprising ATM-cum-debit cards, third party insurance, mutual fund products, and issuance of FASTag.
Pursuant to a Scheme of Amalgamation approved by the Hon'ble High Court of Judicature at Madras, and upon fulfillment of all conditions specified under the said Scheme, Equitas Micro Finance Limited and Equitas Housing Finance Limited amalgamated with the Company, and the Company was renamed Equitas Small Finance Bank Limited (ESFBL). Consequent to the above amalgamation the microfinance and housing finance businesses of the erstwhile EMFL and EHFL were transferred to the Company effective September 2, 2016. ESFBL commenced its banking operations after the receipt of final banking license from the Reserve Bank of India on September 5, 2016.
The Bank is engaged in retail banking business with focus on micro-finance, commercial vehicle finance, home finance, loan against-property finance,corporate finance, and providing financing solutions for individuals and micro and small enterprises (MSEs) that are underserved by formal financing channels while providing a comprehensive banking and digital platform for all.
Banking Outlet comprises branches primarily focusing on garnering and servicing depositors and outlets that conducts lending operations for underbanked and unbanked. The Bank deployed 322 ATMs and cash recyclers at their banking outlets to save valuable time making the same as a pleasant experience. At present, the Bank operates from more than 853 locations across 15 States/Union Territories (including National Capital Territory) of the country.
The Board of Directors of ESFBL and EHL in their respective Meetings held on January 31, 2019 and February 1, 2019 approved a Scheme of Arrangement between EHL, ESFBL and the respective shareholders contemplating issue and allotment by ESFBL of 89,20,62,982 fully paid-up equity shares for no cash consideration to the shareholders of EHL as of the Record Date set out in the Scheme and consequent reduction by ESFBL of Securities Premium Account, the revenue and other reserves and the surplus in Profit and Loss Account by an amount equal to the face value of the shares of ESFBL issued under the Scheme.
The Bank in its Meeting held on December 6, 2019 approved issue of 4,74,58,239 Equity Shares of Rs 10 each at a price of Rs 52.68 per equity share (including a premium of Rs 42.68 per equity share) aggregating to Rs 250 crores, by private placement to IIFL AIF through its various funds for a stake of 4.51% in post-issue paid-up share capital of Bank.
In the Board Meeting of the Bank held on 23 March 2020, following approvals were accorded, to make loans upto Rs 18000 Crore in ordinary course of business for Financial Year 2020-21; that subject to approval of shareholders, to borrow money upto an aggregate sum of Rs 27000 crore outstanding at any point of time and issue Certificate of Deposits (CoDs) in more than one tranches upto an amount not exceeding Rs 3,000 Crore.
During FY 2020, transactions carried out through retail internet banking amounted to Rs. 3,802 crores.
During the second half of 2020, the Bank raised Rs. 28,000 lakh through an Initial Public Offer (IPO) and got the equity shares on BSE Limited and National Stock Exchange of India Limited listed effective from November 2, 2020.
The Board of Directors of Equitas Small Finance Bank Limited (ESFBL) and Equitas Holdings Limited (EHL) at their respective Meetings held on July 26, 2021 approved a Scheme of Amalgamation between EHL, ESFBL and their respective shareholders, contemplating amalgamation of EHL with ESFBL, which was designed to achieve the RBI licensing requirement of dilution of Promoter Shareholding in the Bank and Minimum Public Shareholding (MPS) requirements prescribed by SEBI Regulations. Subsequently, ESFBL achieved the MPS through a Qualified Institutions Placement (QIP) of its shares, in February 2022, after obtaining the necessary approvals which comprised issue of 10,26,31,087 equity shares of Rs. 10/ each at premium of Rs. 43.59 per share, aggregating to a fund raise of Rs. 550 crore utilised 100% for augmenting Tier 1 capital of the Bank during the year. As a result of this QIP, the Public Shareholding in the Bank increased from 18.70% to 25.37%, thereby complying with Minimum Public Shareholding (MPS) requirements prescribed by the SEBI Regulations. As a result, the Scheme was made effective from February 02, 2023. Pursuant to the effect of the scheme, 78,95,35,166 fully paid equity shares of Rs 10/- each were allotted to the eligible Equity shareholders of EHL as on the Record date i.e., February 03,2023 as per the share exchange ratio envisaged in the approved scheme i.e.,231 equity shares of Rs 10 each of ESFBL in respect of every 100
equity shares of Rs 10 each fully paid up held by them in EHL as consideration for transfer and vesting of undertaking of EHL in ESFBL in terms of the Scheme.
Equitas Small Finance Bank Ltd
Chairman Speech
Making a meaningful difference at scale
Dear stakeholders,
The financial year gone by was an eventful one. Advanced economies
grappled with a plethora of challenges including an escalation in geopolitical conflict,
constrained supply chains, historically high inflation, and instability in the banking
system. Although India too encountered high inflation, the India government's focus on
infrastructure- led growth, the balanced policy on import sourcing, and the Central Bank's
proactive stance were the bulwarks. As we course through FY24, the Indian economy remains
stable with improved corporate balance sheets and well-capitalised banks.
During FY23, the environment turned favourable, largely due the rebound
in the economy as the pandemic receded. Our disbursements, collections, asset quality
indicators, deposits, traction for newer products like affordable home loans, new
commercial vehicle loans and user passenger car loans and Brand visibility improved.
Advances grew by 35% YoY to '27,861 crore and deposits by 34% YoY to '25,381 crore. Small
business loans (SBL) continued to grow at a rapid pace, with gross advances crossing
'10,000 crore.
Our asset quality improved significantly, with GNPA at 2.60% (vs. 4.06%
in FY22) and NNPA at 1.14% (vs. 2.37% in FY22), which speaks volumes about the resilience
of our customer segments, as well as our proprietary credit assessment model. We have
always been conservative about provisions, which is reflected in the further improvement
in the provision coverage ratio (PCR) to 56.90% at the end of FY23 from
Equitas SFB's success story is not confined to spreadsheets, and
operational and financial metrics. Our purpose as a bank extends far beyond mere
transactions. That's why, aligned with our core values, we have embraced the 'Beyond
Banking' philosophy with an unwavering commitment to making a lasting impact on the lives
we touch.
42.73% at the end of FY22. The Bank remains well capitalised with total
CRAR at 23.8%, significantly above the 15% regulatory requirement, to fuel the next phase
of its growth journey. We also contained our cost of funds at 6.38%, despite a series of
policy rate hikes by the RBI to rein in inflation.
In the coming years, we plan to build our consumer finance portfolio by
foraying into credit cards and personal loans which will also further help increase
stability through a diversified loan portfolio. Additionally, with the obtaining of the
AD-1 license, we will work on offerings like forex cards, FCNR deposits, remittances,
among others.
Before I delve deeper into our FY23 performance, it's important to
address two key events which, I believe, have significant ramifications for the Bank's
future. First, we completed the reverse merger of Equitas Holdings Limited with Equitas
Small Finance Bank Limited. Apart from ending the anomaly of having two listed Companies
with more or less the same asset base, the merger cleared the decks for Equitas Small
Finance Bank to apply for a Universal Bank Licence once the guidelines for the same are
issued. However, whatever be our nomenclature, our focus towards the unbanked and
underbanked will remain unaltered. Inclusiveness in our view, is of trenchant significance
if Equitas SFB were to remain a profitable and allweather edifice.
Second, recall that, in May 2022,
Mr. P.N. Vasudevan, MD & CEO, had expressed his desire to move on
to engage in philanthropic work. This would have created a discontinuity in leadership and
turbulence in your young and evolving institution. The Board was able to persuade him to
stay on. His tenure has been recently extended by the RBI for another three years,
effective from July 23, 2023 and I firmly believe this augurs well for Equitas SFB.
The prudent investments we have made on people, processes and
technology have started to yield results, and will continue to play a pivotal role in
enriching our customers' journeys in a seamless and efficient manner. As India continues
on its path to realise its ambition of becoming a technology- driven and knowledge-based
developed economy, we believe we are a proxy to the growth levers of inclusive development
and last mile delivery.
Staying true to the founding vision of Equitas, we continued to
dedicate our resources towards the society we serve, to unlock the full potential. Through
Equitas Development Initiatives Trust (EDIT), our focused interventions across our chosen
areas of education, training, rehabilitation, and health care have made a meaningful
difference to the lives and livelihoods of millions to date. I'm also proud to report you
that the work on setting up a hospital for on affordable cancer treatment is progressing
on track, which would have usher in an era of new hope and optimism for many battling the
menace of cancer.
That said, Equitas SFB's success story is not confined to spreadsheets,
and operational and financial metrics. Our purpose as a bank extends far beyond mere
transactions. That's why, aligned with our core values, we have embraced the 'Beyond
Banking' philosophy with an unwavering commitment to making a lasting impact on the lives
we touch. We listen, understand, and walk with our customers on their journeys, offering
guidance and support at every step. We celebrate their triumphs, as if they were our own.
And then we realise how their stories of positive change seamlessly become the real
metrics of our success.
Before I conclude, I need to mention that my tenure as the Chairman of
the Bank ends in April next year. It has been a pleasant and educative experience for me
right from 2012, when I came in as the Chairman of Equitas Microfinance Company and stayed
on to bask in the warmth of my relationship with Mr. Vasudevan and others in the Bank.
I am grateful to all of you and wish you all every happiness in life
and every satisfaction in work as the future unravels. What Equitas is today has been
possible only because of the faith you have reposed on us. As we move forward, we hope to
reinforce this faith by continuously empowering our customers to realise their full
potential.
Warm regards,
Arun Ramanathan
Part-Time Chairman and NonExecutive Independent Director
  Â
Equitas Small Finance Bank Ltd
Company History
Equitas Small Finance Bank Limited was incorporated on June 21st, 1993 as V.A.P. Finance Private Limited and later renamed as Equitas Finance Private Limited in August, 2011. In 2011, Equitas Holdings Limited acquired the Company. The Company's name was subsequently changed to Equitas Finance Limited in September 2015 consequent to it becoming a Public Limited Company.
Equitas Bank is one of the largest small finance banks in India. As a new-age bank in one of the fastest growing economies, it offers a bouquet of products and services to meet the needs of its customers - individuals with limited access to formal financing channels, Micro, Small & Medium Enterprises (MSMEs) and corporates. The Bank's firmly entrenched strategy focuses on providing credit to the unbanked and underbanked micro and small entrepreneurs, developing products to address growing aspirations at the bottom of the pyramid', fueled by granular deposits and value for money' banking relationships.
The Bank's asset products are suited to a range of customers with varying profiles, which include provision of Small Business Loans (SBLs) comprising loan against property, housing loans, and agriculture loans to micro entrepreneurs, microfinance to joint liability groups predominantly comprising women, used and new commercial vehicle loans to drivers and micro entrepreneurs, MSE loans to proprietorship, and loans to non-banking financial companies (NBFCs). On the liability side, the Bank's target customers comprise mass and mass-affluent individuals to whom it offers current accounts, salary accounts, savings accounts, and a variety of deposit accounts. In addition, the Bank provides noncredit offerings comprising ATM-cum-debit cards, third party insurance, mutual fund products, and issuance of FASTag.
Pursuant to a Scheme of Amalgamation approved by the Hon'ble High Court of Judicature at Madras, and upon fulfillment of all conditions specified under the said Scheme, Equitas Micro Finance Limited and Equitas Housing Finance Limited amalgamated with the Company, and the Company was renamed Equitas Small Finance Bank Limited (ESFBL). Consequent to the above amalgamation the microfinance and housing finance businesses of the erstwhile EMFL and EHFL were transferred to the Company effective September 2, 2016. ESFBL commenced its banking operations after the receipt of final banking license from the Reserve Bank of India on September 5, 2016.
The Bank is engaged in retail banking business with focus on micro-finance, commercial vehicle finance, home finance, loan against-property finance,corporate finance, and providing financing solutions for individuals and micro and small enterprises (MSEs) that are underserved by formal financing channels while providing a comprehensive banking and digital platform for all.
Banking Outlet comprises branches primarily focusing on garnering and servicing depositors and outlets that conducts lending operations for underbanked and unbanked. The Bank deployed 322 ATMs and cash recyclers at their banking outlets to save valuable time making the same as a pleasant experience. At present, the Bank operates from more than 853 locations across 15 States/Union Territories (including National Capital Territory) of the country.
The Board of Directors of ESFBL and EHL in their respective Meetings held on January 31, 2019 and February 1, 2019 approved a Scheme of Arrangement between EHL, ESFBL and the respective shareholders contemplating issue and allotment by ESFBL of 89,20,62,982 fully paid-up equity shares for no cash consideration to the shareholders of EHL as of the Record Date set out in the Scheme and consequent reduction by ESFBL of Securities Premium Account, the revenue and other reserves and the surplus in Profit and Loss Account by an amount equal to the face value of the shares of ESFBL issued under the Scheme.
The Bank in its Meeting held on December 6, 2019 approved issue of 4,74,58,239 Equity Shares of Rs 10 each at a price of Rs 52.68 per equity share (including a premium of Rs 42.68 per equity share) aggregating to Rs 250 crores, by private placement to IIFL AIF through its various funds for a stake of 4.51% in post-issue paid-up share capital of Bank.
In the Board Meeting of the Bank held on 23 March 2020, following approvals were accorded, to make loans upto Rs 18000 Crore in ordinary course of business for Financial Year 2020-21; that subject to approval of shareholders, to borrow money upto an aggregate sum of Rs 27000 crore outstanding at any point of time and issue Certificate of Deposits (CoDs) in more than one tranches upto an amount not exceeding Rs 3,000 Crore.
During FY 2020, transactions carried out through retail internet banking amounted to Rs. 3,802 crores.
During the second half of 2020, the Bank raised Rs. 28,000 lakh through an Initial Public Offer (IPO) and got the equity shares on BSE Limited and National Stock Exchange of India Limited listed effective from November 2, 2020.
The Board of Directors of Equitas Small Finance Bank Limited (ESFBL) and Equitas Holdings Limited (EHL) at their respective Meetings held on July 26, 2021 approved a Scheme of Amalgamation between EHL, ESFBL and their respective shareholders, contemplating amalgamation of EHL with ESFBL, which was designed to achieve the RBI licensing requirement of dilution of Promoter Shareholding in the Bank and Minimum Public Shareholding (MPS) requirements prescribed by SEBI Regulations. Subsequently, ESFBL achieved the MPS through a Qualified Institutions Placement (QIP) of its shares, in February 2022, after obtaining the necessary approvals which comprised issue of 10,26,31,087 equity shares of Rs. 10/ each at premium of Rs. 43.59 per share, aggregating to a fund raise of Rs. 550 crore utilised 100% for augmenting Tier 1 capital of the Bank during the year. As a result of this QIP, the Public Shareholding in the Bank increased from 18.70% to 25.37%, thereby complying with Minimum Public Shareholding (MPS) requirements prescribed by the SEBI Regulations. As a result, the Scheme was made effective from February 02, 2023. Pursuant to the effect of the scheme, 78,95,35,166 fully paid equity shares of Rs 10/- each were allotted to the eligible Equity shareholders of EHL as on the Record date i.e., February 03,2023 as per the share exchange ratio envisaged in the approved scheme i.e.,231 equity shares of Rs 10 each of ESFBL in respect of every 100
equity shares of Rs 10 each fully paid up held by them in EHL as consideration for transfer and vesting of undertaking of EHL in ESFBL in terms of the Scheme.
Equitas Small Finance Bank Ltd
Directors Reports
Equitas Small Finance Bank Ltd
Company Background
| Incorporation Year | 1993 |
| Registered Office | 4th Floor Spencer Plaza Pha-II,No 769 Anna Salai (Mount Road)
Chennai,Tamil Nadu-600002 |
| Telephone | 91-44-42995000,Managing Director |
| Fax | 91-44-42995050 |
Anil Kumar SharmaPATHANGI NARASIMHAN VASUDEVAN| Company Secretary | Ramanathan |
| Auditor | T R Chadha & Co LLP/Varma & Varma |
| Face Value | 10 |
| Market Lot | 1 |
| Listing | BSE,NSE, |
| Registrar | KFin Techologies Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032 |
Equitas Small Finance Bank Ltd
Company Management
| Director Name | Director Designation | Year |
|---|
| Arun Ramanathan | Chairman & Independent Directo | 2023 |
| ARUN KUMAR VERMA | Independent Non Exe. Director | 2023 |
| NARAYANASWAMY BALAKRISHNAN | Independent Non Exe. Director | 2023 |
| Geeta Dutta Goel | Independent Non Exe. Director | 2023 |
| Navin Puri | Independent Non Exe. Director | 2023 |
| S A Ramesh Rangan | Independent Non Exe. Director | 2023 |
| Samir Kumar Barua | Independent Non Exe. Director | 2023 |
| Narasimhan Srinivasan | Independent Non Exe. Director | 2023 |
| VINOD KUMAR SHARMA | Independent Non Exe. Director | 2023 |
| PATHANGI NARASIMHAN VASUDEVAN | Managing Director & CEO | 2023 |
| Rohit Phadke | WTD & Executive Director | 2023 |
| Murali Vaidyanathan | WTD & Executive Director | 2023 |
| Ramanathan | Company Sec. & Compli. Officer | 2023 |
Equitas Small Finance Bank Ltd
Listing Information
| Listing Information |
|---|
| BSE_500 |
| CNX500 |
| BSESMALLCA |
| CNXSMALLCA |
| BSEALLCAP |
| BSEFINANCE |
| BSESMALLSE |
| SML250 |
| MSL400 |
| BSEDFINRVG |
| NFTYMSC400 |
| NFTYSC50 |
| NFTYSC250 |
| NF500M5025 |
| NFTYTOTMKT |
Equitas Small Finance Bank Ltd
Finished Product
| Product Name | Unit | Installed
Capacity | Production
Quantity | Sales
Quantity | Sales
Value |
|---|
| Interest on Advances | NA | 0 | 0 | 0 | 3139.1224 |
| Income on Investments | NA | 0 | 0 | 0 | 246.1447 |
| Interest on bal with RBI | NA | 0 | 0 | 0 | 74.4022 |