Equitas Small Finance Bank Reports Mixed Financial Results Amidst Profitability Challenges in June 2025
Equitas Small Finance Bank's financial results for the quarter ending June 2025 show mixed performance. The bank achieved its highest quarterly interest earned, but faced significant declines in profit before tax and profit after tax. Additionally, operating profit and net interest income decreased, while the net NPA ratio rose, indicating ongoing challenges.
Equitas Small Finance Bank has recently reported its financial results for the quarter ending June 2025, revealing a complex picture of performance. The bank's evaluation has undergone an adjustment, with its score shifting to -16 from -17 over the past three months.On a positive note, Equitas Small Finance Bank achieved its highest quarterly interest earned at Rs 1,648.86 crore, marking consistent growth over the last five quarters. This trend indicates a robust near-term sales outlook. However, several challenges are evident in the financial results. The bank reported a profit before tax less other income (PBT) of Rs -589.17 crore, reflecting a significant decline compared to the average of the previous four quarters. Similarly, profit after tax (PAT) fell sharply to Rs -223.76 crore, indicating a substantial downturn in profitability.
Operating profit and operating profit margin also reached their lowest points in the last five quarters, suggesting a deterioration in the bank's efficiency. Additionally, net interest income has decreased to Rs 785.74 crore, while earnings per share (EPS) dropped to Rs -1.96, highlighting ongoing profitability concerns. The net non-performing assets (NPA) ratio increased to 0.98%, indicating a rise in stressed loans.
Overall, while there are some positive indicators, the financial results for Equitas Small Finance Bank reflect significant challenges that the institution must navigate.
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