Below are Quote on RBI lifts restriction imposed on Equitas SFB By Mr. Jaikishan Parmar- Sr. Equity Research Analyst, Angel Broking Ltd

“Equitas Holding on Monday reported to exchange that The Reserve Bank of India (RBI) has lifted all restrictions imposed on Equitas Small Finance Bank (ESFB) a year ago. There are 2 restrictions imposed by RBI and those are (a)Restriction ESFB from opening new branches (b)froze the remuneration of MD&CEO at the then-existing level. As per the RBI guideline, SFB having networth more than Rs.500cr has to list shares within three years of starting operation. ESFB started operation in Sep 2016, hence, ESFB should have listed shares before Sep 2019. which they failed to list and RBI imposed restriction. But once share ESFB listed RBI lifted all restriction.

ESFB reported a healthy set of numbers at the operating level, now the only concern for investors wants to monitor slippages from morat book over the next two quarters and qualitative factor to watch the improvement in RoE trajectory and ramping up provision coverage ratio. Currently, it trades at 1.2x of Q2FY21 Book value (Including fresh issue).”

Above views are of the author and not of the website kindly read disclaimer