Fincare Small Finance Bank which has 80% loan books in Micro Finance has come up with its annual results. Let us look at the results at a glance. 1. Revenue in Fy22 has increased to 1674 Crores from 1376 Crores last year. Revenue is mainly contributed by Interest Income and Investment income. 2. Total expenditure has increased from 1000 Crores in Fy21 to 1216 Crores in Fy22. 3. Operating Profit has increased from 363 Crores to 431 Crores in Fy22. 4. Loan Book of Fincare Small Finance Bank has increased from 5300 Crores to 7036 Crores. Until this stage, the Fincare Small Finance Bank has shown decent growth. However, if you see the Net-Profit, it has come down heavily from 146 Crores in Fy21 to just 5 Crores in Fy22. Almost 100% profit is decline. The main reason for the profit to decline is due to very high provisioning. In Fy21, the total provision for bad loans was just 216 Crores but that has increased to massive 425 Crores in Fy22. 5. The Gross NPA has increased from 6.42% in Fy21 to 7.79% in Fy22. 6. ROA (Return on Assets) has decreased from 1.44% to 0.09%. 7. D/E has also increased from 1.04 to 1.52. 8. Capital Adequacy Ratio has also reduced from 29.56% to 22.32% in Fy22. ESOPs Issued to Management During the quarter and year ended 31 March, 2022, the fincare Bank has received approval from RBI to grant stock options of 2,65,748 shares under Employee Stock Option Scheme to MD & CEO for FY 2022 (Pertains to FY 21 – proposal for FY 22 is yet to be submitted to the RBI). Valuations of Fincare Bank Unlisted Share Total Net-Worth as on 31.03.2022 is 1107 Crores. Total Shares Outstanding = 22 Crores Book Value = 50 CMP = 150 P/B = 3x Conclusion: Though Fincare Small Finance Bank has shown decent growth in loan book in Fy22 but the profitability was marred by increase in provisioning due to large bad loans. It means bank has still not able to come out from the shocks which Covid-19 has given to the banking and NBFC sectors in India. Results Link Want to invest in Fincare Small Finance Bank? Click here