Equitas Small Finance Bank reported a significant decline in its net profit for the fourth quarter of FY25, falling to ₹42.1 crore from ₹207.6 crore in the same period last year. This sharp drop was attributed to increased provisioning and higher operating expenses. Despite the profit slump, the bank’s net interest income (NII) showed a modest increase of 5.5% year-on-year, reaching ₹829.5 crore, slightly surpassing analyst expectations.
In terms of asset quality, the bank’s gross non-performing assets (GNPA) ratio improved to 2.89% from 2.97% in the previous quarter, while the net non-performing assets (NNPA) ratio increased marginally to 0.98% from 0.96%. The total value of gross NPAs stood at ₹1,067.7 crore, slightly lower than ₹1,071.9 crore in the preceding quarter.
The bank’s capital adequacy ratio (CAR) remained robust at 23.1%, well above the regulatory minimum, indicating a strong capital position. Additionally, the liquidity coverage ratio (LCR) was maintained at 120%, ensuring sufficient liquidity to meet short-term obligations.
Shares of the company were trading 3% lower at a price of ₹66.91 on Tuesday afternoon.
