Equitas Small Bank SFB plans to raise up to Rs 1.000 crore in equity by issuing shares to institutional investors to meet minimum public shareholding MPS norms. The amount to be raised includes a premium on shares.
The firm board approved this raise, which is being done to fulfil requirements stipulated by Securities and Exchange Board of India Sebi by raising equity through qualified institutions placement QIP the firm informed the BSE.
Its stock closed on the BSE with a gain of about one per cent at Rs 67.3 per share. At the end of June, its capital adequacy ratio was 24.07 per cent.
Listed entities are expected to have at least 25 per cent public holding. However, the promoters have held about 81 per cent stake in the bank as of June.
On November 2nd, 2020 the bank launched its stock market debut. Last year the Reserve Bank of India had barred from opening new branches after it missed the deadline to list its shares on the stock exchanges, a key licensing condition. The RBI also froze the salary of the SFB s CEO and chief director with respect to his salary. Both curbs were lifted after listing.
Meanwhile, their deposits rose by 40% per cent year-on-year, or YoY to Rs 18,094 crore as in Q 2 FY 22 from Rs 12,901 crore last year. The share of total deposits - Current Account and Savings Account CASA — in low-cost deposits was held at 45 per cent in September, up from 25 per cent a year ago.
Its advances rose by 13 per cent YoY to Rs 18,981 crore in Q 2 from Rs 16,731 crore a year ago. The disbursements rose 65 per cent YoY to Rs 3,137 crore in Q2.