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Equitas SFB reports flat growth in net profit at Rs 108 cr in Dec quarter

The South-based SFB had posted a net profit of Rs 111 crore in the year-ago quarter

Equitas SFB | Companies | economy

Press Trust of India  |  New Delhi 

Equitas SFB

Equitas Small Finance Bank (SFB) on Friday reported flat growth in its net profit at Rs 108 crore for the quarter ended December 2021, with marginal rise in total income and interest income.

The South-based SFB had posted a net profit of Rs 111 crore in the year-ago quarter.

Total income of the bank rose marginally to Rs 1,035 crore during October-December period of 2021-22, as against Rs 1,012 crore earlier. Interest income was at Rs 901 crore, as compared to Rs 857 crore.

The lender said its advances grew by 13 per cent as of December 31, 2021 to Rs 19,687 crore, of which 81 per cent were secured loans. It disbursed loans worth Rs 2,861 crore in Q3 FY22.

On the asset front, there was deterioration as the gross non-performing assets (NPAs) rose to 4.61 per cent of the gross advances, as against 2.27 per cent at the end of December 2020. However, it improved when compared to 4.82 per cent in the quarter ended September 2021.

Likewise, the net NPAs or bad loans stood higher at 2.51 per cent as against 0.67 per cent a year ago and 2.46 per cent in the preceding quarter.

However, despite elevated NPA levels, the provisions for bad loans and contingencies were down at Rs 78.40 crore as against Rs 134 crore in Q3 FY21.

P N Vasudevan, the bank's managing director and CEO, said the business environment is slowly coming back to normal.

"Our flagship product, small business loans remain resilient, and affordable housing loans and new commercial vehicle loans are primed for growth in the coming quarters," he said.

"Deposits continue to perform well and during the quarter, the bank has been able to significantly improve its retail focus and moderate the excess liquidity. An over 50 per cent CASA (current account savings account) ratio is something we would be focussed to retain going forward," Vasudevan said.

stock closed 1.38 per cent higher at Rs 55.10 apiece on BSE.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Fri, January 28 2022. 22:41 IST