Will grow microfinance book from next year: Equitas Small Finance

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Equitas Small Finance Bankposted a weak quarter. Net interest margins (NIMs) are at a multi-quarter low and their credit cost has also increased. In an interview to CNBC-TV18, PN Vasudevan, MD & CEO of Equitas Small Finance Bank spoke about the results and his outlook for the company.

Vasudevan said that the entire impact of demonetisation is behind us and we will not see any hangover of demonetisation going ahead.

He further said that net interest margins on advances have remained flat at 9.5 percent.

Net interest margin has declined due to fundraising done in Q3, he added.

Microfinance book has come down to one-third of the total book. However, we will grow microfinance book from next year, said Vasudevan.

Talking about Union Budget, he said announcements made in the Budget are positive for the company.

Tax reduction in micro, small and medium enterprises (MSME) will aid in improving cash flows, he said.

He also mentioned that Budget measures will aid in loan growth going ahead.

source:-moneycontrol