Equitas Small Finance Bank Q3 results: Net profit surges 19% to Rs 202 cr


Equitas Small Finance Bank Limited, revealed their financial results for the quarter and nine months ended December 31, 2023. The bank reported a Quarterly Profit After Tax (PAT) of Rs. 202 Cr in Q3FY24, marking a substantial increase from Rs. 170 Cr in Q3FY23. The Gross Advances for Q3FY24 reached Rs. 32,776 Cr, reflecting a commendable growth of 32 per cent Year over Year (YoY).

Notably, the Gross Non-Performing Assets (GNPA) witnessed a significant decline to 2.38 per cent in Q3FY24 from 3.46 per cent in Q3FY23, showcasing the bank’s effective asset quality management. The Return on Assets (RoA) and Return on Equity (RoE) for the same period stood at 1.98 per cent and 14.44 per cent, respectively.

Key highlights of Q3FY24 include the bank achieving strong performance indicators, sustaining loan and deposit growth, and maintaining stable margins. The Gross Advances exhibited robust growth at 32 per cent YoY, with net advances growing at 25 per cent YoY, excluding IBPC and securitization. The Yield on disbursements improved by 120 basis points to 18.77 per cent in Q3FY24 compared to 17.57 per cent in Q3FY23.

The bank’s Capital position remained robust, with a Networth of Rs. 5,715 Crs, and as of December 31, 2023, Total CRAR stood at 20.24 per cent, Tier I at 19.69 per cent, and Tier II at 0.55 per cent. The Treasury and Liquidity position also received favorable ratings, with the bank’s issuer rating at AA-/Stable by India Rating & CareEdge Ratings. Profit on the sale of Investments for the quarter was reported at Rs. 26.91 Crs.

In terms of the Profit & Loss statement, Net Interest Income (NII) grew 21 per cent YoY and 3 per cent QoQ, while Other income saw a remarkable growth of 46 per cent YoY and 15 per cent QoQ. The Profit After Tax (PAT) for Q3FY24 stood at Rs. 202 Crs, reflecting a growth of 19 per cent YoY and approximately 2 per cent QoQ.

Regarding Asset Quality & Provisions, the bank maintained a stable Annualized gross slippage rate of 3.99 per cent for Q3FY24 compared to 5.03 per cent in Q3FY23. The GNPA improved by 108 basis points YoY to 2.38 per cent in Q3FY24, and the NNPA improved by 67 basis points YoY to 1.06 per cent. The Provision Coverage ratio remained robust at 55.97 per cent, with the bank continuing to adhere to stringent provision norms across product segments.

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