Net interest income jumped 28% to Rs 743 crore in Q1 FY24 as compared with Rs 580 crore in Q1 FY23.

The bank's net interest margin (NIM) remained healthy at 8.76% in the first quarter. Cost to income ratio improved to 65.05% in Q1 FY24 as compared with 60.60% in Q1 FY23 and 58.09% in Q4 FY23.

Total operating expenditure aggregated to Rs 581 crore in Q1 FY24, up 16% YoY. Credit cost reduced 58% YoY to Rs 60 crore during the period under review.

The bank's annualized gross slippages remain healthy at 3.07% for Q1FY24 as compared to 3.06% in Q4FY23 and 5.75% in Q1FY23.

GNPA improved by 135bps YoY to 2.60% in Q1FY24 compared to 3.95% in Q1FY23. NNPA increased by 95bps YoY to 1.12% in Q1FY24 as compared to 2.07% in Q1FY23.

In order to strengthen PCR, the bank has made additional provisions of Rs.13.99 crore during the quarter, PCR improved to 57.79% from 56.90% in Q4FY23 and 48.46% in Q1FY23.

Equitas SFB's disbursements in Q1 FY24 were at Rs 4,757 crore, registering a growth of 47% YoY. The bank reported strong disbursement across all product segments, with the Bank's flagship product – SBL. (Small Business Loans) clocking a YoY disbursement growth of 31%. Gross advances as of Q1 was at Rs 29,601 crore , growth of 36%.

The bank's total deposits grew 62% YoY in Q4 FY23 to Rs. 27,709 crore. CASA ratio stood at 38%. Term deposits grew by 73% YoY to Rs 17,067 crore, with retail term deposits aggregating to Rs 10,536 crore (up 49% YoY).

The bank's net worth has stood at Rs 5,360 crore. As of June 30, 2023, Total CRAR at 22.06% | Tier I at 21.36% and Tier II at 0.70%.

P N Vasudevan, managing director and CEO of Equitas Small Finance Bank said, “The bank has now consistently delivered more than 2% ROA and approximately 15% ROE over the past three quarters back by a strong credit growth, continued traction in retail deposits and a favourable credit cycle in urban and rural geographies.”

Equitas Small Finance Bank is one of the largest small finance banks in India. The bank offers a bouquet of products and services tailored to meet the needs of our customers – individuals with limited access to formal financing channels, as well as affluent and mass affluent, small & medium enterprises (SMEs) and corporates.

The scrip fell 0.51% to ended at Rs 98.61 on Friday, 28 July 2023.