Equitas Micro Finance Pvt Ltd (Equitas Micro Finance) was set up by Mr. P N Vasudevan in 2007 for providing microfinance services. Equitas Micro Finance, headquartered at Chennai, operates from 104 districts across 7 states/union territories.
Equitas group had also diversified into vehicle and housing finance segments in 2011. While the vehicle finance segment has posted significant growth and had an outstanding portfolio of Rs.526 crore as on September 30, 2013, the housing finance segment is smaller with an outstanding portfolio of Rs.67 crore as of that date.
Performance on key parameters
- Loan portfolio grew at a robust 57 percent during 2012-13, followed by moderate growth of 30 percent (annualized) during the first half of 2013-14. However, the business remains concentrated in Tamil Nadu, which accounted for 66 percent of the loan portfolio as on September 30, 2013
- The asset quality has been healthy since inception, except during 2011-12, when the company faced delinquencies in several districts including few districts in Tamil Nadu
- The resource profile is moderately diversified. Apart from bank loans, the company has access to the debt capital market although in a limited way. The cost of borrowings is in line with those of large MFIs
- Capitalization is adequate. The Equitas group has consistently demonstrated the ability to raise equity well ahead of requirements. In addition, consistent performance coupled with the high caliber of investors enhances the ability to raise capital to support growth in future
- The profitability of Equitas Micro Finance has been healthy with a return on assets being over 1.5 percent over the past three years. However, profitability could be under slight pressure as margin cap is to be reduced by 200 bps since 2014-15
EQUITAS MICROFINANCE REPORTS
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