ESAF Small Finance Bank on Friday reported 52 per cent decline in June quarter net profit at Rs 63 crore due to increase in bad loans.
The Kerala-based lender had earned a net profit of Rs 130 crore in the year-ago period.
However, total income increased to Rs 1,138 crore from Rs 992 crore a year ago, ESAF Small Finance Bank said in a regulatory filing.
Interest income grew to Rs 1,022 crore during the period under review, from Rs 899 crore a year ago.
The bank's asset quality worsened with Gross Non-Performing Assets (NPAs) surging to 6.61 per cent of gross advances as of June 30, 2024, from 1.65 per cent by the end of first quarter of the previous fiscal.
Net NPAs also rose to 3.22 per cent of the advances, from 0.81 per cent at the end of first quarter last year.
As a result, provisions and contingencies increased to Rs 169 crore from Rs 129 crore earmarked during the same quarter a year ago.
However, the capital adequacy ratio of the bank improved to 23.46 per cent, as compa
