H2 traditionally good for lending; crossed Rs 3000 cr in deposits: Equitas Holdings

Equitas Hldings posted a weak set of earnings in q2 as asset quality deteriorates in both the MFI & non-MFI book.

Throwing more light on numbers and future outlook, HK Raghavan, President - Inclusive and Outreach Banking, Equitas said the banking transition is almost complete and for the first time they have crossed Rs 3000 crore in terms of deposits and 38 percent of this is CASA.

He said the second half has always been good for lending and so hopes H2 will be good and so expect GNPAs in the non MFI business to be around March’17 levels.

The asset under management (AUM) growth for the company remain muted at Rs 7326 crore up only 3.5 percent Year on Year (YoY) and 4.1 percent quarter on quarter (QoQ). Meanwhile, the gross non-performing assets (GNPA) came in higher at 5.76 percent versus 4.91 percent in the earlier quarter.

The GNPA of MFI book stood at 6.72 percent versus 4.99 percent QoQ, while that for non-MFI book came in at 5.3 percent versus 4.85 percent QoQ.