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ESAF Small Finance Bank on Friday reported 52 per cent decline in June quarter net profit at Rs 63 cr due to increase in bad loans.
The Kerala-based lender had earned a net profit of Rs 130 cr in the year-ago period.
However, total income increased to Rs 1,138 cr from Rs 992 cr a year ago, ESAF Small Finance Bank said in a regulatory filing.
Interest income grew to Rs 1,022 cr during the period under review, from Rs 899 cr a year ago.
The bank's asset quality worsened with Gross Non-Performing Assets (NPAs) surging to 6.61 per cent of gross advances as of June 30, 2024, from 1.65 per cent by the end of first quarter of the previous fiscal.
Net NPAs also rose to 3.22 per cent of the advances, from 0.81 per cent at the end of first quarter last year.
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As a result, provisions and contingencies increased to Rs 169 cr from Rs 129 cr earmarked during the same quarter a year ago.
However, the capital adequacy ratio of the bank improved to 23.46 per cent, as compared to 20.56 per cent on June 30, 2023.
The bank is carrying Rs 34.74 cr as an additional contingency provision on standard assets as of June this year, it said.
The bank's board also approved appointment of George Chacko Varghese as Chief Compliance Officer with effect from August 1, 2024.
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