Equitas Small Finance Bank on Thursday reported a multi-fold rise in net profit at Rs 97 crore in the June quarter on higher interest income. It had posted a net profit of Rs 12 crore in the year-ago period.
However, the profit was lower sequentially by 18.8 per cent from Rs 119.51 crore in quarter ended March 2022. Bank's total income during April-June period of 2022-23 increased to Rs 1,073.62 crore as against Rs 922.55 crore a year ago, Equitas SFB Limited (ESFBL) said in a regulatory filing.
Interest income of the bank rose to Rs 940 crore during the quarter under review from Rs 819 crore last year. On asset quality, there was a reduction in gross bad loans or Non-Performing Assets (NPAs) at 4.10 per cent of the gross advances by June-end this year. It was at 4.76 per cent by June 2021.
In absolute value, the gross NPAs stood at Rs 856 crore. Net NPAs came down to 2.15 per cent (Rs 441.22 crore) from 2.38 per cent (Rs 398.22 crore).
Provisions for bad loans and contingencies for the reported quarter fell to Rs 141.59 crore from Rs 150 crore in the preceding year. With regard to the merger process between Equitas SFB and its holding company Equitas Holdings Ltd (EHL), the lender said that RBI has conveyed its "no objection" for the proposed merger in May.
The proposed merger has also been cleared by stock exchanges, NSE and BSE, and markets regulator Sebi in June. Consequently, joint application by EHL and ESFBL for the scheme of amalgamation was filed with the National Company Law Tribunal, Chennai Bench on June 18 to seek directions for convening meeting of shareholders and creditors of the two companies."Subsequently, NCLT has passed an order dated July 22, 2022 directing EHL and ESFBL to convene meetings of their respective equity shareholders and unsecured creditors on September 6, 2022 and depositors holding deposits above Rs 3 lakh in ESFBL on September 7, 2022. Necessary steps are being taken to convene the meetings as directed by NCLT," ESFBL said. Shares of the bank closed 0.11 per cent down at Rs 46.35 apiece on BSE.