ESAF Small Finance Bank (SFB) on Wednesday reported a 44.64 % year-on-year decline in its FY21 net profit to Rs 105.40 crore, mostly due to larger provisions. The Thrissur-based lender had posted a net profit of Rs 190.39 crore in FY20.
The bank reported gross NPA ratio at 6.70% and net NPA at 3.88% for the fiscal 2020-21.
MD and CEO K Paul Thomas stated due to a serious crisis at the grassroots level mainly because of the pandemic, the collection efficiency was adversely impacted. The bank, as a prudent measure, holds provision in excess of the RBI requirement in the regular category to the extent of Rs 91 crore as of March 31, 2021, he added. Provision Coverage Ratio is reported at 52.77%.
The bank was launched in March 2017 and it became a scheduled bank in December 2018.
The operating profit elevated from Rs 324.70 crore in FY20 to Rs 415.84 crore in FY21.Total organization registered development of 25.85% from Rs 13,846 crore for the year ended March 31, 2020, to Rs 17,425 crore for the year ended March 31, 2021.
“The bank has improved its operating profit and total business despite the challenges posed by the pandemic. With the support of our customers and their unwavering faith in us, we could also enhance our presence across the country. The reduction in the PAT was mainly due to the higher provisions during the fiscal,” Thomas added.
Deposits have grown 28.04% from Rs 7028 crore as of March 31, 2020, to Rs 8999 crore for the fiscal year ended March 2021. Total CASA enhanced to Rs 1748 crore from Rs 960 crore, marking 81.99% development more than the similar period.
During the year the bank has raised Tier I capital amounting to Rs 162.59 crore by way of a private placement. This along with the present year’s profit enhanced the CRAR by 20 bps from 24.03% as at March 31, 2020, to 24.23% as of March 31, 2021, regardless of the boost in organization, bank sources stated.