Equitas Small Finance Bank, Equitas SFB Q1 results, net profit, provisions, asset quality, gross NPA, net interest margin, assets under management, banking sector, June quarter earnings
Equitas Small Finance Bank reported Rs 184 crore net profit for the first quarter of the fiscal against a loss of Rs 224 crore in the year ago period. It earned a net profit of 213 crore in the fourth quarter of the last fiscal.
The return to profitability year-on-year was largely buoyed by 74% lower provisions at Rs 161 crore against 612 crore in the year ago period.
"We frontloaded provisions in the first quarter last year when the microfinance crisis peaked. It was an outlier," managing director PN Vasudevan told ET.
The bank's pre-provision operating profit for the quarter stood higher at Rs 405 crore against 315 crore in the year ago period, backed by a rise in total income at Rs 2216 crore from Rs 1941 crore over the same period.
The net interest margin for the quarter stood at 7.24%, down 12 basis points quarter-on-quarter.
The bank's gross non-performing assets ratio reduced to 2.42% as on June-end from 2.92% a year prior. Its assets under management grew 27% year-on-year to Rs 47641 crore.
