Comments
Equitas Holdings Ltd on Monday reported a 25.3 per cent decline in its consolidated net profit to ₹ 52.48 crore in first quarter ended June of this fiscal.
Its net profit was ₹ 70.27 crore in the same quarter a year ago.
Total income of the company, however, rose to ₹787.09 crore during the quarter from ₹662.52 crore in the same period of 2019, it said in a BSE filing.
Sequentially, its income fell from ₹802.86 crore in the March 2020 quarter.
Interest income during the April-June 2020 quarter rose to ₹761 crore from ₹ 627.25 crore in the same period a year ago.
On listing of its subsidiary Equitas Small Finance in share markets, Equitas Holding said it was in the process of completing the initial public offer (IPO) of shares.
However, due to the COVID-19 global pandemic and consequent lockdowns across the country, the completion of the listing process and the IPO of shares have been delayed, .
As a pre-condition to small finance bank licensing guidelines by RBI, Equitas Small Finance Bank was required to be listed within three years from the date of commencement of operations (September 5, 2016).
The management and the board of directors remain committed to completing the IPO of shares in due course, once normalcy in business operations is restored, it said.
The board has declared an interim dividend of Re 1 per equity share of ₹ 10 each for the financial year 2020-21, at its meeting held on August 10, 2020.
During the quarter ended June 30, 2020, the management of the bank decided to extend benefit of charging interest on simple interest basis as against compound basis during the moratorium period, on loans that are under moratorium, the company said.
“Accordingly, based on the revised estimated cashflows, the bank has estimated and recorded a modification loss of ₹ 23.37 crore during the period ended June 30, 2020,” Equitas Holdings said.
It has another subsidiary Equitas Technologies Pvt Ltd, which is engaged in the business of freight aggregation.
Equitas Holdings is a non-deposit taking systemically important - core investment company.
Shares of Equitas Holdings traded 2.26 per cent higher at ₹52.05 on the BSE.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.