Any current/future new fundraising through debt or equity?

Equitas Small Finance Bank currently has hardly or practically no Tier 2 capital. Their preferred approach is to first look at raising Tier 2 capital based on appetite and cost when their capital adequacy ratio approaches 18-19%. Raising equity capital is currently seen as less likely or "looks a little different" at this point in time. The decision on fundraising depends on cost of funds, appetite, and capital adequacy requirements. Overall, the immediate focus is on Tier 2 capital raise rather than equity infusion.

Any current/future capex/capital investment/strategic investment?

Equitas Small Finance Bank continues to invest significantly in product development and technology. Two major products under development are credit cards and the AD1 product, with launch scheduled for next year, expected to initially drag on the bottom line but contribute positively later. Recent investments include loan origination systems, customer apps, vehicle finance LOS, retail LOS, enterprise data warehouse, and CRM projects. Major IT projects such as the CVs upgrade and EDW have gone live; CRM and IBM app expected to go live in Q4 FY '24. The bank is committed to ongoing investments in

Future growth expectations in sales/revenue/volumes?

Advances (loans) grew 37% year-on-year, with expected full-year growth in the range of 25%-30%, considering last year's muted first half. Strong demand in segments like commercial vehicle finance and small business loans supports growth of higher-yielding products within these categories. Expansion potential exists through leveraging an established branch network (400+ for liabilities, 500+ for assets) with moderate additions in branches (~30-35 per year). Product-wise, affordable housing loans are expected to start contributing positively to margins from next year. New products like c

Future growth expectations in earnings/operating earnings/profits/EPS?

Advances expected to grow 25-30% for the full year, supported by strong demand across commercial vehicle finance, small business loans, and other segments. Earnings growth driven by moderate improvement in net interest margin (NIM) as old deposits mature and get replaced, with interest costs expected to stabilize around 7.5%. Operating expenses are set to rise due to continued investment in technology and new product launches (credit cards, AD1 product), but efficiency gains and scale benefits are likely to improve operating leverage post first quarter. Affordable housing product expecte

Equitas Sma. FinQ2 FY24Banks

Equitas Sma. Fin Q2 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹68.4P/E: 15.0Market Cap: ₹7.7K CrSector: Banks

Management growth scorecard

Revenue

Category 2

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 2

Advances (loans) grew 37% year-on-year, with expected full-year growth in the range of 25%-30%, considering last year's muted first half.
Strong demand in segments like commercial vehicle finance and small business loans supports growth of higher-yielding products within these categories.
Expansion potential exists through leveraging an established branch network (400+ for liabilities, 500+ for assets) with moderate additions in branches (~30-35 per year).
Product-wise, affordable housing loans are expected to start contributing positively to margins from next year.
New products like credit cards and AD1 are in development; launches planned next year might initially drag margins before contributing positively.
Technology and product investments continue, enhancing customer experience and operational efficiency, supporting scale-up.
Deposit growth remains strong (~40% YoY), with focus on retail term deposits and CASA growth initiatives to support liability base expansion.
Overall, a healthy macro environment and festival season optimism underpin expectations of sustained demand and growth.

Margin guidance

Category 3

Advances expected to grow 25-30% for the full year, supported by strong demand across commercial vehicle finance, small business loans, and other segments.
Earnings growth driven by moderate improvement in net interest margin (NIM) as old deposits mature and get replaced, with interest costs expected to stabilize around 7.5%.
Operating expenses are set to rise due to continued investment in technology and new product launches (credit cards, AD1 product), but efficiency gains and scale benefits are likely to improve operating leverage post first quarter.
Affordable housing product expected to break even next year and contribute positively to margins.
Pre-provision operating profit (PPOP) is on an expansion trajectory with 36% year-on-year growth reported this quarter.
PAT grew 70% YoY in Q2; ROA and ROE stand at 2.03% and 14.62%, respectively, signaling ongoing profitability improvements.
Investments in technology and product innovation are expected to sustain medium-to-long-term growth and enhance profitability.

See what Equitas Sma. Fin management said on margin guidance — free account, 30 seconds.

Fundraise plans

Equitas Small Finance Bank currently has hardly or practically no Tier 2 capital.
Their preferred approach is to first look at raising Tier 2 capital based on appetite and cost when their capital adequacy ratio approaches 18-19%.
Raising equity capital is currently seen as less likely or "looks a little different" at this point in time.
The decision on fundraising depends on cost of funds, appetite, and capital adequacy requirements.
Overall, the immediate focus is on Tier 2 capital raise rather than equity infusion.

Order book

The transcript provided from the Equitas Small Finance Bank Limited Q2 FY'24 earnings call does not explicitly mention details on current or expected order book or pending orders. The discussion primarily focuses on: - Financial performance, deposit growth, and advances. - Products like affordable housing, credit cards, and AD1, with some expected launches next year. - Asset quality and segments such as microfinance, commercial vehicles, small business loans. - LCR (Liquidity Coverage Ratio) and wholesale deposits. - Branch network and growth strategies. - No specific commentary on order book size or pending orders was made. If you need information about order books or pending orders, it seems this topic was not covered in the provided excerpt. Please provide additional documents or specify if a different section should be referenced.

See what Equitas Sma. Fin management said on order book — free account, 30 seconds.

Capex plans

Yes

Equitas Small Finance Bank continues to invest significantly in product development and technology.
Two major products under development are credit cards and the AD1 product, with launch scheduled for next year, expected to initially drag on the bottom line but contribute positively later.
Recent investments include loan origination systems, customer apps, vehicle finance LOS, retail LOS, enterprise data warehouse, and CRM projects.
Major IT projects such as the CVs upgrade and EDW have gone live; CRM and IBM app expected to go live in Q4 FY '24.
The bank is committed to ongoing investments in technology to improve efficiency, customer experience, and product offerings.
Branch expansion will be moderate, focusing on leveraging existing network rather than aggressive branch addition.
Focus remains on Basel-friendly deposits to optimize the liquidity coverage ratio.
No quantified capex target disclosed, but investment and tech upgrades are ongoing and expected to continue long-term.

Track Equitas Sma. Fin — get its next earnings analysis in your feed

How does Equitas Sma. Fin rank vs peers in Banks?

Pro feature

ThisEquitas Sma. Fin

Rev 2Mar 3

See where Equitas Sma. Fin sits in BanksSee which companies these are, and every other name in the sector.Open rankings

How does Equitas Sma. Fin rank in Banks?

Compare Equitas Sma. Fin against every Banks company (Q2 FY24) on revenue, margins and earnings-call signals.

View Banks leaderboard →

What Equitas Sma. Fin's management said in earlier quarters

Others in Banks this season

RBL Bank Ltd (Q2 FY25)
Q2 FY25 Net Interest Income (NII): ₹1,615 crore, up 9% YoY (Page 8, 60, 62) . Key concall takeaways from RBL Bank Ltd's Q2 FY25 earnings call — and how it…
IndusInd Bank Ltd (Q2 FY24)
Loans outstanding: ₹3,15,454 crores, up 21% YoY (Page 4 & 6) . Key concall takeaways from IndusInd Bank Ltd's Q2 FY24 earnings call — and how it ranks against…
IDBI Bank Ltd (Q1 FY22)
Net Interest Income (NII): ₹2,506 crore, up 41% YoY . Key concall takeaways from IDBI Bank Ltd's Q1 FY22 earnings call — and how it ranks against sector peers.
IDBI Bank Ltd (Q2 FY22)
4,154 crore (↓11% YoY) . Key concall takeaways from IDBI Bank Ltd's Q2 FY22 earnings call — and how it ranks against sector peers.

Compare:vs HDFC Bank Ltd vs ICICI Bank Ltd vs SBI

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →