Equitas Small Finance Bank (ESFB) on Friday reported 79 per cent fall in net profit at Rs 12 crore for June quarter 2021-22 on account of provisions for restructured accounts.
The bank had posted a net profit of Rs 58 crore in the same quarter of the previous fiscal year.
Total income during the quarter under review rose to Rs 922.59 crore from Rs 750.96 crore in the year-ago period.
Net interest income during the quarter stood at Rs 461 crore, up from Rs 404 crore in year-ago period.
Net interest margin -- difference of interest earned and expended -- was 7.87 per cent.
ESFB said it has restructured advances of Rs 1,328 crore under COVID 1.0 and COVID 2.0, which forms around 7.5 per cent of its gross advances.
While it restructured advances worth Rs 430 crore in COVID 1.0, amounts worth Rs 897 crore were restructured in COVID 2.0.
"The bank carries a provision of Rs 110.51 crore towards the restructured book of Rs 897 crore," it said in a release.
On the asset front, gross non-performing assets (NPAs or bad loans) spiked to 4.58 per cent of gross advances as of June 30, 2021 from 2.68 per cent by the year-ago same period.
Net NPAs too moved up at 2.29 per cent from 1.39 per cent. Provision coverage ratio stands at 51.21 per cent, it said.
Cash flows of small retailers were significantly impacted during the quarter due to lockdowns and COVID-related restrictions.
In the absence of a moratorium during the second wave of COVID, the bank offered to restructure loans of impacted customers in order to help them manage their cash flows better, P N Vasudevan, Managing Director and CEO, ESFB said.
"However, in July, we are seeing a strong uptick in collections and disbursements as the country gets back to near normalcy," he said.
ESFB mainly caters to small retailers and transporters engaged in daily use products.
Advances as of first quarter 2021-22 were at Rs 17,837 crore, up 15 per cent year-on-year, it said adding that disbursals were Rs 1,265 crore during the period.
The lender said nearly 82 per cent of its advances are secured loans.
ESFB stock settled at Rs 62.95 on BSE, down 0.47 per cent from previous close.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.