Total gross advances increased 15.44% year on year (YoY) and 3.38% QoQ to Rs 36,050 crore as on 30 September 2024.

The total gross advances include an Inter-Bank Participation Certificates (IBPC)/Securitized/Assigned portfolio amounting to Rs 1,396 crore as of 30 September 2024, down from Rs 2,321 crore in June 2024.

As of 30 September 2024, CASA (Current Account Savings Account) deposits stood at Rs 12,184 crore, registering a growth of 17.37% YoY and 3.92% QoQ. The bank’s CASA ratio was at 31% as on 30 September 2024, a decline from 34% posted as on 30 September 2023.

Cost of funds increased to 7.50% in Q2 FY25 from 7.21% in Q2 FY24 and 7.46% in Q1 FY25.

“The Bank witnessed strong growth in Small Business Loans and Affordable Housing Finance and has gone cautious on Micro finance. The Microfinance Industry continues to see stress with delinquencies remaining at elevated levels. We expect to see stress for some more time. The Bank will continue to work with other industry players to improve lending practices which should bring the comfort back in this product,” the bank stated in exchange filing.

Further the bank said, “Micro finance contributes around 16% to the total advances of the bank as of Sep'24 and is expected to contract in the long term. The Bank is putting in extra focus in products such as the Micro Loan against Property for small businesses, which addresses the top end of the Micro finance customer segment.

Over time, as this momentum picks up, we expect this to balance out the expected drop in Micro finance growth. Deposits continue to grow strongly, and we were able to maintain the CASA ratio after a few quarters of drop.”

Equitas Small Finance Bank is one of the largest small finance banks in India.

The bank reported 86.5% fall in net profit to Rs 25.76 crore in Q1 FY25 as against Rs 191.20 crore posted in Q1 FY24. The bank’s total income jumped 19.9% YoY to Rs 1,709.66 crore in Q1 FY25.

The counter rose 0.24% to end at Rs 75.26 on Friday, 4 October 2024.