Are Equitas Sma. Fin latest results good or bad?
Equitas Small Finance Bank's latest results show mixed performance: while interest earned reached a five-quarter high, profitability metrics declined significantly, with a Profit Before Tax of Rs -589.17 crore and a rise in net non-performing assets to 0.98%, raising concerns about asset quality.
Equitas Small Finance Bank has reported its financial results for the quarter ending June 2025, highlighting a complex operational landscape. The bank achieved an interest earned of Rs 1,648.86 crore, representing the highest quarterly figure in the last five quarters, with a marginal growth of 0.3% compared to the previous quarter. However, this positive development is contrasted by significant declines in profitability metrics.The Profit Before Tax less Other Income (PBT) was recorded at Rs -589.17 crore, indicating a substantial decline compared to the average of the previous four quarters. Similarly, the Profit After Tax (PAT) was noted at Rs -223.76 crore, reflecting a dramatic drop from prior averages. The operating profit also fell to Rs 23.08 crore, with the operating profit margin decreasing to 1.40%, suggesting challenges in operational efficiency.
Additionally, the net interest income decreased to Rs 785.74 crore, marking the lowest level in five quarters. The net non-performing assets (NPA) rose to 0.98%, indicating an increase in stressed loans, which raises concerns about asset quality. Despite a rise in non-operating income to Rs 291.69 crore, there are questions regarding its sustainability.
Overall, the company saw an adjustment in its evaluation, reflecting the mixed performance in its financial results.
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