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Chennai-headquartered financial service firm Equitas Holdings has reported a 76 per cent decline in consolidated net profit at ₹10.91 crore for the second quarter ended September 30, against ₹46.35 crore in the previous year period, on the back of continuing stress in the business.
Provisions and write-offs stood at ₹27.06 crore (₹14.88 crore).
Net interest income (NII) grew 14 per cent ₹230 crore while net income (NII plus other income) increased 15 per cent to ₹264 crore.
However, pre-provision operating profit fell 50 per cent because of an increase in operating expenses — due to converting into a bank and related increase in employee and other costs. However, on a sequential basis, operational expenditure has come down by 4 per cent, according to a statement.
Microfinance advances dropped 27 per cent, while other products grew 35 per cent. Non-microfinance disbursements in the September quarter grew 48 per cent, driven by robust disbursement of new products such as business and agri loans, loan against gold and small and mid corporate loans.
As of September 30, AUM increased 3.5 per cent to ₹7,326 crore.
The gross NPA stood at 5.76 per cent as of the September quarter, when compared with 4.91 per cent of June quarter. Net NPA stood at 2.8 per cent.
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