Equitas Small Finance Bank Reports Significant Profit Drop

Equitas Small Finance Bank has announced a staggering 67% decline in its profit after tax (PAT) for the quarter ending December 31, 2024, with figures dropping to Rs 66 crore from Rs 202 crore in the same period last year.

Growth in Advances and Deposits

Despite the profit slump, the bank saw a 14% year-on-year growth in gross advances, reaching Rs 37,344 crore in Q3 FY25, up from Rs 32,776 crore the previous year. The non-microfinance book also experienced a 20% increase. Total deposits rose by 26% to Rs 40,738 crore in the same quarter.

Vehicle Finance Portfolio Expansion

The vehicle finance portfolio exceeded Rs 9,000 crore, with used car advances hitting Rs 1,700 crore, marking a 55% growth year-on-year.

Asset Quality and Capital Raising

The gross non-performing assets (GNPA) ratio increased to 2.97% from 2.38% in the corresponding quarter last year, while the net non-performing assets (NNPA) ratio decreased to 0.96% from 1.06%. Additionally, the bank raised Rs 500 crore through the issuance of Tier-II bonds with a 6-year tenure.