Esaf Small Finance Bank fourth quarter results: Net profit was Rs 43 crore, down 57% year-on-year.

KOLKATA: Esaf Small Finance Bank on Wednesday reported a 57% year-on-year decline in net profit in the March quarter due to a nearly three-fold increase in provisions and contingency provisions following a sharp deterioration in asset quality.

Net profit was Rs 43.4 crore against Rs 101.4 crore in the same period last year.

The bank’s operating profit was 30 per cent higher at Rs 285 crore against Rs 219 crore, but net profit was lower due to provisions and contingencies of Rs 226 crore against Rs 82 crore.

Total non-performing assets more than doubled to Rs 893 crore compared to Rs 352 crore. The gross NPA ratio was 4.76% at the end of March, higher than 2.49% in the same period last year. The net NPA ratio recorded 2.26% compared to 1.13%.

Total income increased by 33 per cent to Rs 1152 crore against Rs 868 crore, while total expenditure also increased by 34 per cent to Rs 867 against Rs 649 crore, mainly due to higher interest payments to depositors. At its meeting on Wednesday, the bank’s board proposed a dividend. It is Rs 0.70 per share for FY24. No dividends were paid last year.