By CL Jose
KOCHI/February 07-2022: Having logged losses for two consecutive quarters – first quarter (Q1) and second quarter (Q2) of the current financial year, ESAF Small Finance Bank is now back in ‘black’ with a net profit of Rs50.87 crore for the third quarter (Q3).
The bank had reported Rs15.85 crore loss for the first quarter and Rs91.63 crore loss for the second quarter and despite the Q3 profit, the bank has closed the 9-month period in a loss of Rs107.49 crore. ESAF is the fourth bank from Thrissur to have entered the list that also comprises South Indian Bank (SIB), CSB Bank and Dhanlaxmi Bank.
In fact, the relatively low provisions at Rs73.81 crore for Q3 compared with Rs189.13 crore the bank had to set aside for the previous quarter, down by 61 per cent, has come to the rescue of the bank this time.
Run-up to IPO
The biggest challenge before the bank will be to cross the ‘finishing line’ of the financial year ending on March 31, 2022, with a profit against a nine-month loss of Rs50.87 crore.
This is particularly important due to the fact that the bank’s much-hyped initial public offering (IPO) can’t wait beyond October 2022 following the approval it got last October.
Total income for the third quarter (Q3) was Rs565.52 crore compared with Rs491.67 crore for the previous quarter ending September 30, 2021 (Q2).
But the NPA is still playing spoilsport for the bank with the gross NPA growing from Rs597.31 crore to Rs702.23 crore during the quarter under review. This represents an increase from 6.31 per cent to 6.57 per cent.
However, net NPA has showed signs of abetting as it has climbed down marginally from 2.13 per cent to 1.98 per cent in relation to the loans.
Net worth of the bank or the shareholders’ equity has grown sequentially to Rs1301.19 crore from Rs1244.68 crore as on September 30, 2021 (end-Q2).
