Equitas SFB posts ₹224 crore Q1 loss on one-time provisions; advances rise 8%

Equitas Small Finance Bank on Friday reported a net loss of ₹223.8 crore for the quarter ended June 30, compared with a profit of ₹25.8 crore a year earlier, as one-time provisions weighed on the bottom line.The bank made additional standard asset provisions of ₹185 crore for its microfinance portfolio and ₹145 crore towards NPA provisioning due to regulatory changes, leading to a total one-time charge of ₹330 crore in the quarter.

Net interest income slipped 2% year-on-year to ₹785.2 crore from ₹801.5 crore.

Gross non-performing assets (GNPA) improved to 2.82% from 2.89% in the prior quarter, while net NPA fell slightly to 0.95% from 0.98%.
Gross advances grew 8% YoY, driven by an 18% jump in the non-microfinance segment, with small business loans (SBL) rising 22%. Secured loans comprised 91% of the total loan book. The bank’s vehicle finance portfolio crossed ₹9,500 crore, while used car advances surged 50% YoY to over ₹2,000 crore.Total deposits rose 18% YoY and 3% sequentially, with retail term deposits up 20% to ₹19,354 crore. The CASA ratio remained steady at 29%.

Net interest margin stood at 6.55%, while cost-to-income rose to 70.62% from 65.75% a year earlier.

As of June 30, the bank’s capital adequacy ratio stood at 20.48%, with Tier I capital at 17.16%. Liquidity coverage ratio was 209.5%.

Shares of Equitas Small Finance Bank were down 0.32% at ₹56.79 on the BSE.

The stock has fallen over 12.5% year-to-date.