Shares of Equitas Small Finance Bank hit their 52-week high of Rs 101.85 on October 20 morning, a day after the private sector lender reported a 70.2 percent year-on-year (YoY) jump in net profit at Rs 198.1 crore in the September quarter of this fiscal year.
It posted a net profit of Rs 116.4 crore in the year-ago quarter, the company said in a post-market hours regulatory filing on October 19.
Net interest income (NII), the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 25.6 percent to Rs 765.6 crore from a year ago.
The net interest margin (NIM) slipped 33 basis points (bps) to 8.43 percent.
One basis point is one-hundredth of a percentage point.
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The lender’s asset quality also improved during the quarter. Gross non-performing assets (GNPAs) stood at 2.27 percent against 2.75 percent in the June quarter. Net NPA came in at 0.97 percent down from 1.18 percent in the previous quarter.
“The bank registered a strong disbursements growth of 29 percent YoY to Rs. 4,961 Crore,” it said in its filing.
Deposits grew 42 percent YoY and 11 percent QoQ to reach Rs 30,839 crore.
However, Q2 FY24 also saw a 27 bps increase in cost of funds sequentially to 7.21 percent.
“With most of the old deposits at lower rates getting replaced with new deposits at higher rates, we expect further increase in the interest cost to moderate over the next two quarters,” bank’s MD and CEO PN Vasudevan said.
At 10.46 am, Equitas Small Finance Bank was trading at Rs 98.91 on the BSE, up 0.12 percent from the previous close.
The stock has gained 65 percent this year, while the 1-year return stands at 110 percent.
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