The lender’s operating profit fell 37 per cent at Rs 54 crore against Rs 86 crore over the same period while net interest income fell nearly 2 per cent at Rs 124 crore. A 33 per cent rise in operating expenses at Rs 92 crore contributed to the fall in profitability.
Its collection efficiency was at 70 per cent in June on a one-EMI adjusted basis.
“With the easing of restrictions and pick-up in the business activity, we do believe the numbers would improve substantially,” managing director R Baskar Babu said.
Its asset quality deteriorated to 9.5 per cent at the end of June, 11 basis points higher than what it was three months back. It wrote off Rs 79 crore during the quarter. Net NPA was 4.5 per cent compared with 4.7 per cent reported on 31 March 2021.
The bank’s gross advances grew 13.3 per cent year-on-year to Rs 4,000 crore while deposits rose 15.6 per cent to Rs 3,317 crore.
