Equitas Small Finance Bank Q1 results: Net profit plunges 87% to Rs 26 crore

Its gross non-performing assets (NPA) came in at 2.73 percent in the June quarter over 2.61 percent in the previous quarter, while the net NPA at 0.83 percent was better than 1.17 percent in the March quarter.

Equitas Small Finance Bank’s net profit declined 86.5 percent to Rs 25.8 crore in the June quarter from the year-ago period, the lender said in an exchange filing on July 26.

The net profit was also sharply lower from Rs 207.62 posted in the March quarter.

At 14.29 pm, the stock was trading at Rs 87.25 on NSE, down 1.55 percent from the previous day.

The lender's net interest income jumped 7.8 percent to Rs 801.5 crore. Its gross non-performing assets (NPA) came in at 2.73 percent against 2.61 percent in the previous quarter. Net NPA improved at 0.83 percent from 1.17 percent in the March quarter.

The SFB's provisions were at Rs 304.6 crore in the quarter under review against Rs 106.6 crore in the March quarter. It was at Rs 60 crore in the year-ago period, the company statement said.

Q1 highlights

-Yield on gross advances improved by 13 basis points (bps) to 16.45 percent from the previous year. One basis point is one-hundredth of a percentage point

-Gross advances grew at 18 percent YoY and 2 percent sequentially. Non-MF book grew 21 percent YoY, led by 35 percent growth in housing finance and 27 percent growth in SBL

-Overall deposits registered a robust growth of 35 percent YoY & 4 percent QoQ

- Retail term deposits grew 47 percent YoY to Rs 16,128 crore

-CASA ratio was stable at 31 percent, NIM stood at 7.97 percent

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