Equitas Small Finance Bank Q2 Results: Net Profit Rises 71% On Lower Provisions
Net interest income for the bank rose 25.5% from last year to Rs 766 crore in Q2 FY24.
Equitas Small Finance Bank Ltd. surpassed analysts' estimates, with a 70.6% year-on-year rise in net profit for the quarter ended September.
Net profit for Q2 was at Rs 198 crore, as compared with Rs 116 crore a year ago. Analysts polled by Bloomberg estimated a net profit of Rs 180 crore for the July-September quarter.
Sequentially, the net profit rose 3.6%.
Net interest income, or core income, for the bank increased 25.5% from the same period last year to Rs 766 crore during the quarter. Other income rose 24.8% year-on-year to Rs 181 crore.
Asset quality for the lender improved with gross non-performing asset ratio falling 48 basis points sequentially to 2.27%, as of Sept. 30. Net NPA ratio also improved by 21 basis points quarter-on-quarter to 0.97%.
Gross slippages rose to 3.47%, as compared with 3.07% quarter-on-quarter.
Provisions for the quarter fell 30% from a year ago to Rs 63 crore. The provision coverage ratio stood at 57.72% in Q2.
The CASA ratio fell to 34% year-on-year in Q2, as compared with 48.05%. The cost of funds rose 96 basis points to 7.21% in the quarter ended September, as compared with 6.25% in the same period last year.
The net interest margin fell 33 basis points to 8.43% quarter-on-quarter, from the previous 8.76%.
The bank's deposits stood at Rs 30,839 crore, up 42% year-on-year. Sequentially, they grew 11%.
Gross advances stood at Rs 31,229 crore, up 37% year-on-year. Sequentially, they grew 6%.