The bank had earned a net profit of RS 26 Crore last year in the corresponding period.
The net interest rate for the quarter was 6.55% compared to 7.97% in the period of the year ago.
The provision and unforeseen events for the quarter were on RS 612 Crore, more than double the RS 305 Crore from a year ago.
“We have decided to hit once in advance and created a management buffer in provisions against standard assets instead of enabling stress to influence profitability in the next two quarters,” Equitas Managing Director told PN Vasudevan.
“There are signs of improving the reimbursement and we expect that the efficiency of the microfinance collection is expected to be back to almost normal level by the fourth quarter,” he said. It is microfinance activities that have contributed 10% of the gross loan portfolio.
The pre-commission-business result for the revision of the quarter also remained lower on RS 315 Crore against RS 340 Crore in the period of the year ago. The net interest income was lower in RS 786 Crore against RS 802 Crore, while other income was higher in RS 286 Crore against RS 192 Crore.
The gross non -performing assets ratio of the lender was 2.82% at the end of June, an increase of 2.67% per year back. The net NPA ratio was 0.95% against 0.81%.
Gross progress grew by 8% on an annual basis to RS 37,610 Crore, even when the microfinance book 45% Kromp.
“We focus on 15-16% growth in the tax that would be supported by around 20% expansion of non-microfinance activities,” said Vasudevan.
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