Three reasons why Equitas Small Finance Bank stock could rebound
1 week, 1 day ago

Three reasons why Equitas Small Finance Bank stock could rebound

Live Mint  

Stocks of companies that have anything to do with microfinance – including banks, small finance banks, and non-banking financial companies – have been hammered on the bourses over the past three quarters. View Full Image Source: Tijorifinance.com In the September Quarter, small finance banks reported a record percentage of microfinance institution loans that had remained unpaid for 30-180 days. View Full Image Source: Equitas SFB Q2FY25 investor presentation Since there is no near-term visibility on when these metrics are likely to improve, it’s likely that the market is factoring this uncertainty into the price. View Full Image Source: Equitas SFB Q2FY25 investor presentation It also appears that the MFI portfolio is adequately provisioned for now. View Full Image Source: Equitas SFB Q2FY25 investor presentation As and when the banking sector’s outlook and valuations are re-rated, Equitas is a potential candidate for a re-rating.

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History of this topic

MFI portfolio declines, bad assets spike in Sept qtr: Report
1 day, 7 hours ago

MFI portfolio declines, bad assets spike in Sept qtr: Report

Live Mint  

Mumbai, Jan 8 Microlending outstandings in the system reduced 4.3 per cent to ₹4.14 lakh crore in the September quarter as lenders adopted a cautious stance amid deteriorating asset quality, a report said on Wednesday. Loans unpaid for 1-30 days increased to 2.1 per cent from the 1.2 per cent in June, while the ones unpaid for 31-180 days witnessed …

Asset reconstruction companies see spike in unsecured loan sales by lenders
1 month ago

Asset reconstruction companies see spike in unsecured loan sales by lenders

Live Mint  

Mumbai: Asset reconstruction companies are seeing a spike in the sale of bad debt in the unsecured retail loan portfolios of banks and non-banks, as stress rises in the microfinance and personal loan segments. Banks and non-bank lenders have been putting up more unsecured retail loans for sale to asset reconstruction companies over the past six months. Another challenge is …

Microlenders wake up to hangover after credit party
1 month, 2 weeks ago

Microlenders wake up to hangover after credit party

Live Mint  

Mumbai/Bengaluru: Microlenders that splashed out money to indebted individuals are now struggling to get it back, raising concerns that payment delays could show up on balance sheets soon. Leading microfinance companies including CreditAccess Grameen, Fusion Finance and Equitas Small Finance Bank have warned that many of their customers may be over-leveraged, after discovering that some have four or more active …

Microfinance meltdown: Five stocks that could come out on top
1 month, 3 weeks ago

Microfinance meltdown: Five stocks that could come out on top

Live Mint  

The microfinance sector is facing a severe downturn, with every small finance bank and non-banking finance company involved in microlending seeing declines of 30-50%. Equitas Small Finance Bank estimates that around 50% of loans overdue by 90 days eventually become NPAs, though this figure varies across lenders. Equitas Small Finance Bank, Ujjivan Small Finance Bank, CreditAccess Grameen Ltd, and Arman …

Ujjivan to Sell Rs 270 Cr of Bad MFI Loans
1 month, 3 weeks ago

Ujjivan to Sell Rs 270 Cr of Bad MFI Loans

Deccan Chronicle  

Mumbai: Ujjivan Small Finance Bank on Friday said it is looking to sell Rs 270 crore worth of non-performing and written-off micro-banking loans to asset reconstruction companies. Of the Rs 270 crore worth of loans, around Rs 208 crore are non-performing loans, and the remaining Rs 62.36 crore worth of loans have been written off by the bank. In the …

Microfinance risk: Small loans can spell big trouble for Indian banks
1 month, 3 weeks ago

Microfinance risk: Small loans can spell big trouble for Indian banks

Live Mint  

Once bitten twice shy" goes the old adage. Driven perhaps by the lack of credit demand from corporates, a boom in retail credit, an eagerness to bridge the last- mile gap in credit delivery and pressure to achieve priority-sector lending targets, banks seem to have lowered their guard and gone overboard in extending such loans. To its credit, the Reserve …

​​Equitas takes a big knock. Does the small finance bank deserve it?
1 month, 3 weeks ago

​​Equitas takes a big knock. Does the small finance bank deserve it?

Live Mint  

The microfinance sector is facing turbulence, hitting balance sheets hard as the market penalises even stocks with minimal ties to microfinance. While almost all small finance banks started as microfinance institutions, the likes of Equitas SFB have moved away from microfinance over the years. View Full Image Key Ratios Chart - Equitas Small Finance Bank According to the management, current …

Microfinance in doldrums. Will this company outperform, again?
1 month, 4 weeks ago

Microfinance in doldrums. Will this company outperform, again?

Live Mint  

MUMBAI : The true litmus test that differentiates high-quality lenders is whether they have “best-in-class" non-performing asset ratios during crises. View Full Image Source: CreditAccess IP-Q1FY25 For example, after taking a large provisioning hit in Q3FY21, it stated in the next quarter that “strong profitability in Q4 was utilized to absorb the accelerated write-offs and build additional provisioning buffer ahead …

NBFCs brace for slower growth as asset stress, fund costs pinch
2 months ago

NBFCs brace for slower growth as asset stress, fund costs pinch

Live Mint  

Mumbai: The September quarter results for non-banking financial companies were mixed, as most lenders felt the ripple effects of the Reserve Bank of India’s recent regulatory actions and slowdown in credit flow from banks. Higher funding costs and emerging asset quality concerns—especially in retail, unsecured, and microfinance portfolios—hit profitability in the second quarter, and may lead to a cut in …

ICICI Bank shines brightly despite sector struggles, defying resignation sentiment
2 months ago

ICICI Bank shines brightly despite sector struggles, defying resignation sentiment

Live Mint  

Despite a challenging economic environment, banks are seeing some relief in deposit growth, with four of the top five private sector banks reporting deposit growth outpacing credit growth in Q2. However, this growth comes at a price, with banks facing higher funding costs due to rising interest rates. Additionally, HDFC Bank's NIM has declined to 3.46% from 3.47%, indicating a …

Equitas SFB shares hit new high despite weak market sentiments. Buy or wait?
1 year, 2 months ago

Equitas SFB shares hit new high despite weak market sentiments. Buy or wait?

Live Mint  

Stock market today: Equitas Small Finance Bank shares have been in uptrend after the announcement of Q2 results 2023 on Thursday last week. Equitas Small Finance Bank share price target Expecting further upside in Equitas Small Finance Bank shares, Sumeet Bagadia, Executive Director at Choice Broking said, "Equitas Small Finance Bank shares are looking bullish on chart. Equitas Small Finance …

Microfinance portfolio grows 21% in FY23, shows Sa-Dhan data
1 year, 7 months ago

Microfinance portfolio grows 21% in FY23, shows Sa-Dhan data

Live Mint  

India’s microfinance sector has recorded an overall portfolio growth of 21% during 2022-23, as per data from industry body Sa-Dhan. Except for banks, all other institutions recorded double-digit growth, with non-banking financial companies recording a 49% growth and NBFC MFIs growing 37%. According to Jiji Mammen, executive director and chief executive of Sa-Dhan, the microfinance sector has shown significant performance …

Microfinance lenders go for secured loans to diversify risk
2 years, 1 month ago

Microfinance lenders go for secured loans to diversify risk

Live Mint  

A clutch of microfinanciers is venturing into secured asset classes such as mortgages and gold loans to diversify their portfolio and balance the risk of unsecured microlending with loans that require collateral. The strategy change took shape after a Reserve Bank of India circular in March allowed microfinance institutions to lend 25% of their total assets in non-microfinance loans. Mid-caps, …

Concerns re-emerge on retail loans asset quality due to rising lockdowns: ICRA
3 years, 8 months ago

Concerns re-emerge on retail loans asset quality due to rising lockdowns: ICRA

Hindustan Times  

The rising Covid-19 cases has again raised concerns on asset quality of retail loans from non-banking financial companies and housing finance companies, according to investment information agency ICRA. Following the second wave of the pandemic, ICRA expects securitisation volumes to again get impacted in Q1 FY22 as NBFCs and HFCs will be more selective in fresh lending. However, said ICRA, …

Lessons for Equitas Small Finance Bank from Ujjivan’s stellar debut
5 years ago

Lessons for Equitas Small Finance Bank from Ujjivan’s stellar debut

Live Mint  

Mumbai: Small is beautiful, at least in the banking space. Small finance banks are capturing the attention of investors, which is evident from the robust listing of Ujjivan Small Finance Bank Ltd earlier this month. According to the Reserve Bank of India’s prudential rules for small finance banks, lenders will have to list themselves within five years of starting operations. …

Microfinance industry posts 38% growth in 2018-19; total number of accounts stands at 9.33 crore
5 years, 7 months ago

Microfinance industry posts 38% growth in 2018-19; total number of accounts stands at 9.33 crore

Firstpost  

The total number of microfinance accounts was 9.33 crore at the end of March 2019, showing a growth of 21.9 percent, said Microfinance Institutions Network New Delhi: The microfinance industry’s gross loan portfolio stood at Rs 1,87,386 crore at the end of March, up 38 percent year-on-year, said an MFIN report Monday. The total number of microfinance accounts was 9.33 …

Microfinance industry posts 43% growth in loan portfolio to Rs 1.66 lakh cr in December quarter: Report – Firstpost
5 years, 10 months ago

Microfinance industry posts 43% growth in loan portfolio to Rs 1.66 lakh cr in December quarter: Report – Firstpost

Firstpost  

Microfinance industry posted 43.1 percent growth in December quarter 2018 as compared to the year-ago period, with a total loan portfolio of Rs 1,66,284 crore, a report by MFIN said on Monday New Delhi: Microfinance industry posted 43.1 percent growth in December quarter 2018 as compared to the year-ago period, with a total loan portfolio of Rs 1,66,284 crore, a …

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