Equitas Small Finance Bank on Friday reported a 87% year-on-year drop in net profit at Rs 26 crore, on account of a five-fold rise in provisions and contingencies.
The bank said that it has set aside Rs 180 crore in the form of floating provisions to strengthen its provision coverage ratio to 70.29% from 56.06% three months back.
Operating profit rose 9% at Rs 340 crore, backed by 8% rise in net interest income at Rs 802 crore and 28% jump in other income at Rs 192 crore.
The bank’s gross advances grew 18% year-on-year to Rs 34,871 crore at the end of June while deposits rose 35% to Rs 37,524 crore.
Gross non-performing assets ratio rose to 2.67% at the end of June as compared with 2.60% a year back. Net NPA however improved by 31 basis points to 0.81% against 1.12%.
The bank announced the quarterly results during the market hours leading to a 2% fall in share price to Rs 86.90 on BSE while the Sensex soared 1.6% Friday.
