Equitas Small Finance Bank Q2 Results: Net profit plummets 93% to Rs 13 crore

Equitas Small Finance Bank has reported around 93% drop in net profit at Rs 13 crore for the second quarter against Rs 198 crore in the year ago period, largely on account of additional provision to cover risky loan assets.

Its operating profit stood 6% higher at Rs 350 crore against Rs 330 crore.

The bank made an additional provisions of Rs 146 crore to cover stress in its microfinance portfolio, which constitutes just about 16% of the total portfolio.


Its gross non-performing assets ratio rise by 28 bps sequentially to 2.95% at the end of September from 2.67% three months prior to that. Net NPA increased by 16 bps to 0.97% against 0.81%.

"While the non-micro finance portfolio has grown by 20% year, we consciously reduced our lending in micro finance, leading to 15% growth at the overall bank level," managing director PN Vasudevan said.