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Equitas Small Finance Bank expects gross NPA to remain at current levels of 2.5-2.6% in FY25
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Equitas Small Finance Bank reported a 9.47% increase in net profit, reaching ₹208 crore for the fourth quarter ending March 31, 2024.
P.N. Vasudevan, Managing Director and CEO of Equitas Small Finance Bank, on Thursday (April 25) indicated that the bank’s asset quality has nearly reverted to pre-pandemic levels. Addressing concerns over non-performing assets (NPAs), Vasudevan affirmed the bank’s expectation that gross NPAs would sustain at current levels in FY25.
“It will hover between 2.5-2.6%,” he told CNBC-TV18.
He highlighted a one-time impact on NPAs in March 2024 due to Reserve Bank of India’s (RBI’s) clarification.
Further, Equitas SFB anticipates loan growth of 25% in FY25.
The bank has strategically managed its credit-deposit ratio and aims to maintain a credit cost of 1.20-1.25% in the upcoming financial year.
Looking ahead, Equitas Small Finance Bank plans to allocate ₹520 crore over the span of three years to reinforce its operational capabilities and drive sustainable growth.
Despite acknowledging a likely uptick in interest costs by 8-10 basis points, the bank maintains a prudent approach to managing its cost-to-income ratio, expecting it to range between 62-65% in FY25.
On Wednesday (April 25), Equitas Small Finance Bank reported a 9.47% increase in net profit, reaching ₹208 crore for the fourth quarter ending March 31, 2024.
The bank’s total income witnessed a growth to ₹1,685 crore for the fourth quarter, signifying a year-on-year increase from ₹1,394 crore.
As of March 31, 2024, Equitas SFB’s net worth stood at ₹5,969 crore.
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