Equitas SFB net declines 60% on higher provisioning

By: |
October 30, 2021 3:00 AM

PN Vasudevan, MD & CEO, said, “With no lockdowns and spread of virus largely under control, the bank saw an improved performance. While the overall GNPA remained steady compared to the first quarter, there was improved collection efficiency, leading to reduction in overdue cases between one and 90 days.”

Total income stood at Rs 991 crore, against Rs 852 crore, an increase of 16%.Total income stood at Rs 991 crore, against Rs 852 crore, an increase of 16%.

Equitas Small Finance Bank (Equitas SFB) on Friday reported a 60% decline in its net profit to Rs 41 crore for the second quarter, compared with Rs 103 crore in the corresponding quarter of the previous fiscal, mainly on account of provisions made on restructured accounts. Total income stood at Rs 991 crore, against Rs 852 crore, an increase of 16%.

The gross NPA was at 4.64% in Q2FY22, compared with 4.58% in the previous quarter and 2.39% in Q2FY21. Net NPA stood at 2.37% in the quarter under review, as against to 2.29% in Q1FY22 and 1.09% in Q2FY21, The provision coverage ratio was at 50.09%, said a release by the bank.

PN Vasudevan, MD & CEO, said, “With no lockdowns and spread of virus largely under control, the bank saw an improved performance. While the overall GNPA remained steady compared to the first quarter, there was improved collection efficiency, leading to reduction in overdue cases between one and 90 days.”

Advances as of Q2FY22 was at Rs 18,978 crore, a growth of 13% YoY and around 81.44% of advances were secured loans. Strong revival of credit demand witnessed across products. The bank had the highest quarterly disbursement of Rs 3,145 crore in Q2FY22, it said.

Total advances restructured stood at Rs 1,401 crore, which forms around 7% of gross advances, and the bank carried a provision of Rs 196 crore towards the restructured book.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Rise in borrowing cost to elevate further on global yield movement, domestic macros: Marzban Irani
2RBI imposes curbs on Nagar Urban Co-operative Bank, Ahmednagar
3Number of ATMs in country at over 2.13 lakh, says Finance Ministry