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Equitas Small Finance Bank has reported a 79 per cent drop in net profit to ₹11.93 crore in the first quarter as against a net of ₹57.67 crore for the same quarter last year. The bank said the Profit After Tax was affected due to provisions made on restructured accounts.
The Bank has restructured loans amounting to ₹400.48 crore as of June 30, 2021; ₹496.52 crore in July 2021 and has made a provision of ₹110.51 crore against these restructuring under Resolution Framework 2.0
“The Bank primarily caters to small retailers and transporters engaged in daily use products. During the quarter due to lockdowns and other Covid related restrictions, cash flows of these small retailers had been significantly impacted,” said PN Vasudevan, MD and CEO of Equitas Small Finance Bank.
Net Interest Income for Q1FY22 stood at ₹461 crore (₹404 crore) while net interest margin stood at 7.87 per cent. Total income of the bank grew by 23 per cent to ₹922.59 crore ( ₹750.96 crore).
Total advances as of Q1FY22 stood at ₹17,837 crore, growing at 15 per cent Y-o-Y while deposits (excluding CDs) stood at ₹17,021 crore with a Y-o-Y growth rate of 48 per cent.
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