Equitas Small Finance Bank Q2 profit jumps over two-fold to Rs 116 crore

Equitas Small Finance Bank on Monday reported over two-fold jump in its net profit at Rs 116 crore in the quarter ended September 2022 on good growth in loan disbursals.

The SFB (small finance bank) had posted a net profit of Rs 41 crore in the year-ago period.

The net interest income of the lender grew to Rs 610 crore in the July-September period of the current fiscal as against Rs 484 crore in the same period of FY22, Equitas SFB said in a release.

The net interest margin during the quarter stood at 9 per cent.

The lender said its disbursement during the second quarter of FY23 rose by 22 per cent to Rs 3,845 crore from a year ago.

Advances as of Q2FY23 was at Rs 22,779 crore, up 20 per cent from the same quarter a year ago.

The gross non-performing assets decreased to 3.82 per cent from 3.95 per cent in the first quarter of FY23.

P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank, said: "Demand for credit continues to remain strong, especially in the informal sector. The 20 per cent year-on-year growth in advances for the first half is expected to improve further in the seasonally active second half."

Quality of portfolio remains a comfort with reducing credit cost, he said, adding that the deposit growth has been satisfactory.