- Equitas Small Finance Bank reported a net profit of Rs 184 crore in Q1 FY27
- Net interest income rose 30.9% to Rs 1,029 crore year-on-year
- Operating profit increased to Rs 405 crore from Rs 315 crore last year
Equitas Small Finance Bank Ltd. returned to profitability in the first quarter of FY27, reporting a net profit of Rs 184 crore compared with a net loss of Rs 224 crore in the corresponding period last year, aided by healthy core income growth and a sharp decline in provisioning.
Net interest income rose 30.9% year-on-year to Rs 1,029 crore from Rs 786 crore a year earlier, while operating profit increased to Rs 405 crore from Rs 315 crore, according to the company's quarterly earnings announcement.
The lender's asset quality improved sequentially, with gross non-performing assets declining to 2.42% at the end of the June quarter from 2.60% in the preceding quarter. Net NPA also inched lower to 0.71% from 0.72%.
Provisions stood at Rs 161 crore during the quarter, significantly lower than Rs 612 crore reported a year ago, though higher than Rs 124 crore in the March quarter. Tax expense came in at Rs 60.5 crore, compared with a tax credit of Rs 73.1 crore in the year-ago period.
"We delivered healthy growth in core income while asset quality continued to improve sequentially," the company said in its quarterly earnings statement.
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