On Monday the Equitas Holdings Ltd had reported a decline of 25.3 percent in its consolidated net profit to Rs 52.48 crore in the first quarter ended June of this fiscal year. A year ago in the same quarter, its net profit was Rs 70.27. During the first quarter the total income of the company rise to Rs 787.09 crore under review from Rs 662.52 crore in the year 2019 which was in the same period it said in a BSC filing. But in the March of 2020 quarter, its income fell from Rs 802.86 crore. During the April- June of 2020 quarter the interest income rise to Rs 761 crore from Rs 627.25 crore which is in the same period a year ago.
On listing the subsidiary Equitas Small Finance in share markets, the Equitas Holding said that it was in the process of completing the initial public offer (IPO) of shares. But the completion of the listing process and the IPO of shares have been delayed due to the widespread of the COVID-19 pandemic and the subsequent lockdowns which started in March across the country. Among the other conditions as a precondition to small finance bank licensing guidelines by RBI the Equitas, Small Finance Bank was required to be listed within the three years from the date of commencement of operations (September 2016). To complete the IPO of shares in due course once normalcy in business operation is restored, the management and the board of directors remain committed.
At the meeting held on August 10, 2020, the board has declared an interim dividend Re 1 per equity share of Rs 10 each for the financial year 2020-21. On June 30, 2020, when the quarter ended the management of the bank decided to extend the benefit of the charging interest on the simple interest bias against compound basis during the moratorium period, on the loans that are under the moratorium, the company says. Equitas Holdings said that accordingly, based on the revised estimated cash flows the bank has estimated and recorded a modification loss of Rs 23.37 crore during the period ended on 30th June 2020. It also has another subsidiary Equitas Technologies Pvt Ltd which is engaged in the business of the freight aggregation. Equitas holding is a non-deposit core investment company taking a systematically important decision. On the BSC the shares of Equitas Holdings traded 1.96 percent higher at Rs 51.90.
