Equitas Small Finance Bank (SFB) has reported a drop in its collection efficiency at around 78 per cent in May from over 105 per cent in the previous month.
Collection efficiency, which represents total collections during the month as a percentage of that month's total EMIs due, stood at 77.84 per cent in May 2021, as against 105.16 per cent in April, Equitas SFB said in a regulatory filing.
Giving the break-up, it said the corporate sector witnessed nearly 243 per cent collection efficiency, while that of MSE finance stood at 140 per cent.
For micro finance, small business loans and vehicle finance, the collection efficiencies were much lower at 64 per cent, 76 per cent and 67 per cent, respectively.
The billing efficiency -- which represents only the EMIs of that month alone collected as a percentage of that month's total EMIs (equated monthly instalments) due -- also plunged to 66.97 per cent for May as against 84.68 per cent in the previous month.
P N Vasudevan, managing director and CEO of Equitas SFB, said the bank's customers, who are mostly small traders and business people engaged in daily use products, were unable to open their shops and their livelihood has been accordingly impacted.
He said the bank will study the impact of the stress created by the second wave of COVID-19 on customers and whether any restructuring is required.
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