Equitas Small Finance Bank Ltd. said its asset quality deteriorated in the second quarter as some loans in the commercial vehicles space slipped into the bad loans category.
“The slippages were largely contributed by commercial vehicles part of our business that represents 25 percent of our total portfolio,” Managing Director and Chief Executive Officer PN Vasudevan told BloombergQuint in an interview. “But traditionally, there has been a trend in the industry where non-performing asset levels are lower in third and fourth quarters compared to the first half.”
Also, profit after tax fell in the second quarter on account of deferred tax asset write-off worth Rs 24 crore as the company opted for a lower corporate tax rate, Vasudevan said.
Shares of parent Equitas Holdings dropped 9.6 percent during the day to hit a one-year low of Rs 88.05 apiece. That compares with a 0.36 percent decline in the benchmark Nifty 50 Index.
Q2 Results (YoY)
- Calculated net interest income rose 27 percent to Rs 377.91 crore.
- Net profit declined 20 percent to Rs 41.25 crore.
- Disbursements grew 11 percent to Rs 2,408 crore.
- Gross non-performing assets stood at 2.88 percent versus 2.75 percent in the April-June period.
- Net interest margin stood at 8.83 percent against 8.88 percent in the preceding quarter.
- CASA ratio stood at 23 percent.
Watch | Equitas Small Finance Bank's PN Vasudevan on the company's Q2 performance and more...
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