Equitas Small Finance Bank (ESFB) on Friday reported 79 percent fall in net profit at Rs 12 crore for June quarter 2021-22 on account of provisions for restructured accounts. The bank had posted a net profit of Rs 58 crore in the same quarter of the previous fiscal year.

Total income during the quarter under review rose to Rs 922.59 crore from Rs 750.96 crore in the year-ago period. Net interest income during the quarter stood at Rs 461 crore, up from Rs 404 crore in year-ago period.

Net interest margin -- difference of interest earned and expended -- was 7.87 percent. ESFB said it has restructured advances of Rs 1,328 crore under COVID 1.0 and COVID 2.0, which forms around 7.5 percent of its gross advances.

While it restructured advances worth Rs 430 crore in COVID 1.0, amounts worth Rs 897 crore were restructured in COVID 2.0. "The bank carries a provision of Rs 110.51 crore towards the restructured book of Rs 897 crore," it said in a release.

On the asset front, gross non-performing assets (NPAs or bad loans) spiked to 4.58 percent of gross advances as of June 30, 2021 from 2.68 percent by the year-ago same period. Net NPAs too moved up at 2.29 percent from 1.39 percent. Provision coverage ratio stands at 51.21 percent, it said.

Cash flows of small retailers were significantly impacted during the quarter due to lockdowns and COVID-related restrictions. In the absence of a moratorium during the second wave of COVID, the bank offered to restructure loans of impacted customers in order to help them manage their cash flows better, P N Vasudevan, Managing Director and CEO, ESFB said.

"However, in July, we are seeing a strong uptick in collections and disbursements as the country gets back to near normalcy," he said. ESFB mainly caters to small retailers and transporters engaged in daily use products.

Advances as of first quarter 2021-22 were at Rs 17,837 crore, up 15 percent year-on-year, it said adding that disbursals were Rs 1,265 crore during the period. The lender said nearly 82 percent of its advances are secured loans.

ESFB stock settled at Rs 62.95 on BSE, down 0.47 percent from previous close.