Riding on high NII and other income, SFBs witness 59% profit growth

The net profit of listed small finance banks (SFBs) surged 59 per cent year-on-year (Y-o-Y) to Rs 1,057 crore in the first quarter ended June 2023 (Q1FY24), driven by healthy growth in net interest income (NII) and other income streams, such as treasury gains and fees.

Sequentially, however, net profit declined 3.73 per cent from Rs 1,098 crore, according to an analysis based on the performance of five listed SFBs -- AU, Equitas, Suryoday, Utkarsh, and Ujjivan.

The banks' NII expanded 23.8 per cent Y-o-Y to Rs 3,381 crore, reflecting the advantage of increased lending rates. However, quarter-on-quarter (Q-o-Q), NII growth moderated