Equitas Small Finance Bank (SFB) shares surged more than 2% to hit a fresh 52-week high of ₹114.45 on Friday, January 5 after the lender reported strong growth in gross advances and total deposits in the December quarter.
The bank reported a 32% year-on-year growth in gross advances at ₹32,777 crore in the October-December quarter on strong credit demand. The bank's gross advances stood at ₹24,915 crore in the corresponding quarter of the preceding fiscal. On a sequential basis, gross advances grew by 5%.
In a stock exchange filing, Equitas SFB stated that the bank’s overall deposits surged 39% year-on-year to ₹32,385 crore in the third quarter of FY24, compared to ₹23,362 crore in the year-ago period. On a quarterly basis, gross deposits rose 5% from ₹30,839 crore in the September quarter.
However, CASA deposits dropped 2% on a year-on-year basis to ₹10,593 crore in the quarter ended December 31, 2023, as compared to ₹10,786 crore in the year-ago period. Sequentially, the bank reported a 2% growth in CASA deposits.
The bank witnessed an uptick of 7.36% in average cost of funds (COF) for Q3FY24 as against 6.41% in the year ago period. For the September quarter of FY24, average COF was at 7.21%.
Earlier this month, Equitas Small Finance Bank and Care Health Insurance signed a corporate agency agreement, enabling the lender to provide Care Health's health insurance solutions to its customers.
The private lender posted a 70.2% year-on-year (YoY) surge in net profit at ₹198.1 crore for the second quarter that ended September 30, 2023. In the corresponding quarter last year, Equitas Small Finance Bank reported a net profit of ₹116.4 crore. The net interest income (NII) increased 25.6%, reaching ₹765.6 crore in September quarter compared to ₹609.7 crore in the corresponding quarter of FY23.
At 9.35am, shares of Equitas SFB were trading 1.88% higher at ₹113.6 apiece on january 5.
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