30th March 2015 : Equitas Micro Finance the MFI arm of the Chennai based Equitas Holdings completed 3 securitisation transactions worth Rs.210 Crores of microfinance receivables. Equitas has completed 8 such transactions amounting to Rs.575 Crores during the current financial year 2014-15.
In a securitisation deal, pools of assets such as auto loans, mortgage, microfinance loans, etc., are pooled together and hived into special investment vehicles, which issues Pass Through Certificates (i.e. PTCs) bought by investors.
Speaking about the transactions Mr. S.Bhaskar, Group Chief Financial Officer of Equitas Holdings said, “Securitisation is an important source of funding for Equitas which provides microloans to the un-banked and under-banked sections of the society. Way Back in 2009, Equitas Created history by doing the first securitisation by an MFI in India. Since then the Company has done 19 securitisation transactions amounting to over Rs.1, 270 Crores which are invested mainly by commercial banks and Mutual funds. Through such investments we are able to meet the funding needs of unbanked segments of the society and also channelizing the bank funds which in turn meetsthe priority sector lending norms stipulated by RBI.”
He further added. “RBI in its recent study has stressed upon the continued importance of priority sector lending policy to enhance the credit flow to underserved segments such as small and marginal farmers, micro enterprises, weaker sections among others.Equitas aims to play a significant role in the flow of credit to these underserved segments of the society. “
About the Company
MFI arm of Equitas Group, Equitas Micro Finance Private Limited (EMFPL) lends to women micro entrepreneurs under Grameen Bank model. As on 28th February 2015, EMFPL’s Net-worth is Rs.369 Crores, with comfortable Capital adequacy of over 21%. As on that date, EMFPL’s gross loan portfolio is Rs.2,092 Crores spread across 350 branches in 6 states and 1 union territory.
Considering the performance of the company, rating agency, CRISIL has upgraded the credit rating of the Company to CRISIL A- with Stable outlook in June 2014. Recently, in January 2015, rating agency, CARE has upgraded the credit ratings of the Company from CARE A- to CARE A.
Equitas Equitas Holdings Equitas Micro Finance Securitisation