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Sell

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RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

RATING

RECOMMENDATION

Sell

Business Type

Traditional Business

  • Fincare Small Finance Bank Growth

Discover and get info on Fincare small finance bank shares price and Upcoming IPO before buying, selling and investing - Read our Research report on Fincare small finance bank IPO For Information like - Management, Business Model, Financials, Growth, Valuations, Funding Rounds, and News.

Fincare Small Finance Bank Revenue Growth

Growth in %

  • -3.05%

    1 Year

  • 90.56%

    3 Year

  • 77.01%

    5 Year

Revenue of the company is continuously increasing from last 5yr. But last year company has seen bit decline in revenue growth. Interest income of the company has increased by 20.6%. while income from commission and other income has seen fall due to reduction in services availed by customers. FY21 was a challenging year for metro and urban India owing to the lockdownHowever, given the supply chain between rural and urban, cash streams and livelihood did see an impact. Also there has been and there may continue to be lower disbursements due to reduced economic activity. As a result, related revenue generation from processing fees and documentation charges, has and may continue to lower. While the Bank remained cautiously optimistic in this phase and focused on customer connect, expanding network, liquidity management and asset preservation.

Fincare Small Finance Bank Net Profit Growth(PAT)

Growth in %

  • -21.13%

    1 Year

  • NA

    3 Year

  • 111.55%

    5 Year

Net profit of the company has seen a decline of 21.1% in FY21 due to rise in expenses, which includes salary of employees as company shifted its focus towards better health of employees and other expenses which includes rent, taxes, professional fees and business correspondence commission. Even additional costs were incurred as a result of upgrading company's IT systems to allow employees to work from home. While provision for loan losses has also increased due to higher chances of defaults in during pandemic. Still the bank performed better than its peers it's digital-first philosophy helped it to stay agile and ahead, enabling it to deliver banking services seamlessly, despite the challenges.

The operations of several of customers and service providers were also disrupted. As a result, company was able to experiencing an increase in the concentration of disbursements in select states, a drop in collections, this affected company's net profit growth negatively.

Fincare Small Finance Bank EPS Growth

Growth in %

  • -27.18%

    1 Year

  • NA

    3 Year

  • 45.48%

    5 Year

EPS of the company was increasing from past 2 years but last years it has shown a decline, due to fall in its profit. This decline shows the impact of pandemic on the company, due to which company's operations and services reduced. But still company performed better than its peers as they mainly focused on rural areas which, as per company, was less impacted owing to good harvest, government assistance for the rural massescommercial activities continued unhindered.

  • Fincare Small Finance Bank Book Value Growth

Growth in %

  • 56.42%

    1 Year

  • 48.56%

    3 Year

  • 144.88%

    4 Year

Book value of the company has increased due to increase in reserves and surplus by the company. Due to pandemic company increased its provisions as well as reserves to tackle uncertain situations and to be fully prepared for the unforeseen circumstances. While in FY20 company increased its issued equity by Rs.7.17 Cr. via issuing new shares.

Fincare Small Finance Bank EBITDA Growth

Growth in %

  • -25.59%

    1 Year

  • NA

    3 Year

  • 86.98%

    5 Year

Fincare Small Finance Bank Operating Profit Growth

Growth in %

  • -27.78%

    1 Year

  • NA

    3 Year

  • 86.44%

    5 Year


Fincare Small Finance Bank Asset Growth

Growth in %

  • 11.94%

    1 Year

  • 51.87%

    3 Year

  • 91.70%

    5 Year

Due to pandemic asset growth of the bank was slow, specially tangible asset growth. Deferred tax assets of the company has increased due to provisions created by company for employees and loan losses. But once the lockdown restrictions were relaxed, the bank remained focused on asset preservation and only towards the end of the year, asset growth became an area of attention. Overall, cash conservation and asset quality preservation remained the key priorities for the year.

Fincare Small Finance Bank Cash Flow from Operations

Growth in %

  • -89.81%

    1 Year

  • NA

    3 Year

  • NA

    5 Year

  • Fincare Small Finance Bank Sector Specific Ratios

Fincare Small Finance Bank Capital Adequacy Ratio(CAR)

As per the operating guidelines for Small Finance Bank, the Bank is required to maintain minimum CAR of 15% with minimum Tier I at 7.5%. As on 31st March, 2021, the Bank has a healthy Capital Adequacy Ratio of 29.56% which is well above the minimum capital adequacy requirement. The Tier 1 Capital Adequacy Ratio is 24.91% which is above the requirement of 7.5%.

Fincare Small Finance Bank Return on Risk Weighted Assets(RORWA)

Fincare Small Finance Bank Net NPA

Net NPA of the company has shown a sudden hike, due to increase in defaults during pandemic. Even company set provision for NPA in accordance with the aforesaid accounting policy which is higher than the RBI Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances.

Fincare Small Finance Bank CASA

During the year the bank launched Prime Savings account, a new offering in savings account segment targeting professionals. The Bank also sharpened its focus on CASA (Current Account & Saving Account) offerings that yielded a healthy improvement in the CASA ratio doubled over the previous year. Which shows improving position of the bank in current account segment.

Fincare Small Finance Bank Net Interest margin

NIM of the company is rising from previous 3 years, as revenue from interest which includes interest from borrowings and investments is showing a steady growth, interest expenses of the company are also increasing at the same rate but is much lower than its income. This shows company  is operating profitably and allocating and utilizing their assets efficiently.

Fincare Small Finance Bank Gross NPA

The increase in GNPA is due to the strict framework introduced by RBI with ring-fencing and saving banking sector from a further rise in NPAs.

Also on the basis of estimates made by the management, an additional provision for NPAs amounting to Rs.5,907 Lakhs has been recognised by the bank owing to the potential impact of COVID-19 as on 31st March, 2021.

  • Fincare Small Finance Bank Solvency Ratios

Fincare Small Finance Bank D/E Ratio

The company's D/E is constantly dropping because its debt hasn't increased much, which includes borrowing via loans and debentures. Borrowings increased by roughly 6% in FY20 compared to the previous year.

Fincare Small Finance Bank Current Ratio

Current assets of the company has seen a rise of 6.05%, while in FY20 It increased by more than 50%, due to increase in cash requirements with the banks. This further led to improvement in current ratio of the bank.

Fincare Small Finance Bank Quick Ratio

Fincare Small Finance Bank Interest Coverage Ratio

  • Fincare Small Finance Bank Operating Efficiency

Operating profit of the company has declined as increase in company's income couldn't compensate the increase in operating expenses. the provision for loan expense of the bank also increased due to unexpected market movements. This led to fall in operating efficiency of the company.

To tide over the pandemic challenges, the Bank adopted a target-based approach as against going wide across multiple geographies. It intensified the coverage of the business viable districts in the existing States of its presence. This resulted in a better conversion ratio (prospect to customer) and helped in delivering superior customer experience.

Fincare Small Finance Bank Operating Profit EBIT Margin(OPM)

Fincare Small Finance Bank Profit Before Tax Margin (PBT Margin)

Fincare Small Finance Bank Profit After Tax Margin (PAT Margin)


  • Fincare Small Finance Bank Profitablity Ratio

Fincare Small Finance Bank Return on Equity(RoE)

The bank saw a major decline in its Return on equity as in FY21 profit of the company has decreased by around 21%. Even in FY20 company increased its equity by issuing fresh shares and by increasing reserve and surplus. 

Fincare Small Finance Bank Return to Assets (RoA)

The gradual decline in ROA shows company is not able to provide optimum returns on its assets. The major reason behind this is increase in assets of the company including investments in govt securities and its loan portfolio, while the profit couldn't cope up with the same.

  • Fincare Small Finance Bank Valuation Ratios

Fincare Small Finance Bank Earning Yield

  • Fincare Small Finance Bank Regulatory Ratios

Fincare Small Finance Bank CAR

Fincare Small Finance Bank Tier 1

Fincare Small Finance Bank Tier 2

  • Fincare Small Finance Bank NBFC's Ratios

Fincare Small Finance Bank Tier 1 Capital Ratio

Company is maintaining Tier 1 capital well above the RBI minimum standard.

Fincare Small Finance Bank Tier 2 Capital Ratio

Tier 2 ratio of the company is quite low, but as per RBI standard it should be less than Tier 1 capital, and the bank satisfies that critiera very well.

Fincare Small Finance Bank Tangibe Book Value

Tangible book value of the company is increasing continuously due to rise in security premium earned. While due to volatile economic environment statutory reserves are also increasing.

Fincare Small Finance Bank AUM

AUM of the company has seen a fall in FY21, due to the pandemic, it had a negative impact on loan portfolio of the company.

Fincare Small Finance Bank AUM Growth