Credit and finance for MSMEs: Micro lender Capital Small Finance Bank on Thursday reported a 53.19 per cent year-on-year increase in net profit in the second quarter (July-September) of the financial year 2022-23 to Rs 22.81 crore in comparison to Rs 14.89 crore during the same period last year. The gross advances for the bank also jumped by 23.22 per cent during the quarter to Rs 5192.73 crore from the year-ago period. The growth is owing to the increase in mortgage, MSME, retail trader and agriculture loans, the bank said in its quarterly results.
Moreover, its net worth increased to Rs 556.51 crore for the September quarter from Rs 477.16 crore in Q2 FY22 while total income from operations jumped by 14.05 per cent to Rs 179.9 crore from Rs 157.74 during the said period. In terms of deposits, the bank said its total deposits increased to Rs 6184.6 crore for the quarter ended September.
In terms of asset quality, the net non-performing assets as a percentage of total assets for the bank stood at 1.35 per cent for the September quarter while return on assets (RoA) came in at a healthy 1.22 per cent for Q2 and at 1.10 per cent for the half-year ended September 2022. The bank’s earnings per share (diluted) stood at Rs 6.63 for the quarter ended September vis-a-vis Rs 4.35 during the same period last year.
Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises
Capital Small Finance Bank started operations in April 2016 after conversion from Capital Local Area Bank. According to the Reserve Bank of India, a Local Area Bank (LAB) scheme was introduced in August 1996 pursuant to the announcement of the then Finance Minister. LABs were referred to the setting up of new private local banks with jurisdiction over two or three contiguous districts.
Small finance banks (SFBs) had a share of 17.6 per cent amounting to a book size of Rs 50,276 crore in the overall portfolio outstanding of the microfinance sector or the gross loan portfolio that witnessed 18 per cent year-on-year growth during the June quarter to Rs 285.9k crore from Rs 242.3k crore during Q1 last FY, CRIF MicroLend – June 2022 report by credit bureau Crif High Mark noted. Banks and NBFC-MFIs had a higher share of 35.6 per cent and 34.1 per cent respectively during the June quarter.