ESAF Small Finance Bank has reported a nearly 45 per cent decline in its net profit at Rs 105.40 crore in the fiscal year ended March 2021.
The unlisted lender had posted a net profit of Rs 190.39 crore in the preceding financial year 2019-20.
Bank as a prudent measure holds provision in excess of the RBI requirement in the standard category to the extent of Rs 91 crore as of 31 March 2021, it said in a release.
The Kerala-based small finance bank (SFB) said it recorded a 28.7 per cent rise in its operating profit during 2020-21 at Rs 415.84 crore as against Rs 324.70 crore in the financial year 2019-20 despite the challenges faced during the year.
Deposits have grown by 28.04 per cent to Rs 8,999 crore from Rs 7,028 crore as of March 31, 2020, ESAF SFB said in a release.
K Paul Thomas, the Managing Director, and Chief Executive Officer of ESAF Small Finance Bank said: "The bank has improved operating profit and total business despite the challenges posed by the pandemic. The reduction in the PAT was mainly due to the higher provisions during the fiscal." Bank's gross advances increased by 27.37 per cent to Rs 8,415 crore while total business reached Rs 17,425 crore registering a growth of 25.85 per cent.
Due to a severe crisis at the grass-root level due to the pandemic, the collection efficiency was adversely impacted thereby increasing the gross NPA level at 6.70 per cent and net NPA by 3.88 per cent.
ESAF Small Finance Bank has a presence in 19 states and 2 union territories. The bank launched 96 branches in the last financial year.
