Earnings in line; business growth remains healthy

Company

29 Jan 2024 | 5 Min Read

Equitas Small Finance Bank (EQUITASB) reported in-line earnings for 3QFY24 with a YoY growth of 18.7%.

AUM growth remained steady at 32% YoY/5% QoQ, driven by healthy traction in most segments.

Deposit growth was robust at 38% YoY/5% QoQ, led by faster growth in term deposits.

Asset quality ratios deteriorated, with GNPA/NNPA ratios increasing QoQ.

The management expects credit growth to remain robust at 25-28% in FY24.

Maintain BUY rating with a target price of INR125.