Total income stood at Rs 1,540.37 crore in Q2 FY24, registering a growth of 34.2% from Rs 1,147.39 crore reported in the corresponding quarter previous year.
Profit before tax surged 75.4% year on year to Rs 266.99 crore in the quarter ended 30 September 2023.
Net interest income in Q2 FY24 stood at Rs 766 crore, up 26% as against Rs 610 crore posted in Q2 FY23. Net interest margin (NIM) reduced to 8.43% in the September quarter as compared to 9% recorded in Q2 FY23.
On asset quality front, gross non-performing assets (GNPA) improved by 170bps YoY to 2.12% in Q2 FY24 as compared to 3.82% in Q2 FY23. Net non-performing assets (NNPA) increased by 102bps YoY to 0.91% in Q2 FY24 as compared to 1.93% in Q2 FY23.
In order to strengthen PCR, the bank has made additional provisions of Rs 28.04 crore during the quarter.
Annualized gross slippages stable at 3.47% for Q2 FY24 as compared to 3.07% in Q1 FY24 and 5.79% in Q2 FY23.
Gross advances stood at Rs 31,229 crore with the growth of 37% YoY. The bank registered a strong disbursements growth of 29% YoY to Rs 4,961 crore. Deposits grew 42% YoY to reach Rs 30,839 crore.
CASA ratio stood at 34%; term deposits grew 82% YoY to Rs 20,490 crore. Retail term deposits grew 58% YoY to Rs 12,119 crore contributing to 59% of total term deposits
During the quarter, return on assets (ROA) and return on equity (ROE) stood at 2.03% and 14.62%, respectively.
The bank's net worth stood at Rs 5,479 crore. As of 30 September 2023, Total CRAR at 21.33%, Tier I at 20.65% and Tier II at 0.68%.
The bank currently maintains ‘surplus' liquidity in the form of high quality liquid assets (HQLA). Liquidity coverage ratio (LCR) as on 30 September 2023 was 182.17%.
P N Vasudevan, Managing Director and CEO of Equitas Small Finance Bank said, “This financial year is witnessing and continue to witness strong credit growth coupled with stable asset quality and a healthy growth in retail term deposits. CASA seems to be the area of concern for the banking industry. For Equitas, the interest cost has risen to 7.21% for the quarter.
With most of the old deposits at lower rates getting replaced with new deposits at higher rates, we expect further increase in the interest cost to moderate over the next two quarters. Our Investments in Technology/Digitization continue to progress effectively, benefits of which should be felt in the upcoming years.”
Equitas Small Finance Bank offers products and services to meet the needs of individuals with limited access to formal financing channels, as well as affluent and mass affluent, small & medium enterprises (SMEs) and corporates.