Equitas Small Finance Bank Q3 Review - RoA Sustains At ~2% For Fifth Consecutive Quarter: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Equitas Small Finance Bank Ltd.'s sustained its earning trajectory with an return of assets of ~2% for the fifth consecutive quarter despite credit cost normalising to 100 basis points versus 80 bps QoQ led by higher slippages due to Tamil Nadu floods, which impacted the vehicle finance and micro finance Institutions portfolio.Management believes the rise in credit cost during Q3 FY24 is transitory and portfolio quality continued to be robust – it maintains full year FY24 credit cost guidance at 120 bps.While net interest margin fell by 6 bps to 8.37% in Q3 FY24 due to its intent to improve liquidity by increasing CD ratio (improved to 91.5% in December 2023 versus 94.5% QoQ), management indicated that higher share of fixed rate book (greater then 65%) augurs well in the near term, considering likely rate reversal in H2 FY25.Higher disbursement yields, at 18.8% versus blended yield of 17.6% in Q3 FY24, provided comfort on NIM improvement in the near term as cost of funds starts to flatten out.Maintain 'Add'; revised target price to Rs 120 (from Rs 110), rolling over to September 2025E book value per share, valuing the stock at 1.8 times..Click on the attachment to read the full report:.Jindal Steel & Power Q3 Preview: Profit, Ebitda May Rise.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Equitas Small Finance Bank Q3 Review - RoA Sustains At ~2% For Fifth Consecutive Quarter: ICICI Securities

Net interest margin near-term outlook positive

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Equitas Small Finance Bank Q3 Review - RoA Sustains At ~2% For Fifth Consecutive Quarter: ICICI Securities

Net interest margin near-term outlook positive

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