Equitas Small Finance Bank posted a 60% year-on-year fall in net profit to Rs 41.2 crore in the quarter ended September, led by higher provisioning against restructured accounts.

The small finance bank carried a provision of Rs 196 crore towards the restructured book of Rs 1,401 crore.

Total income stood at Rs 991.40 crore in the fiscal second quarter from Rs 852.08 crore in the year-ago quarter.

Net interest income rose to Rs 484 crore from Rs 461 crore.

Total advances restructured for the year at Rs 1,401 crore forms around 7% of the gross advances, the bank said. This excludes the Rs 140.40 crore of restructuring in RSL 1.0 (restructured loans), which also forms part of RSL 2.0, the bank added.

Upgradations and recoveries improved sharply, it said, adding strong revival of credit demand witnessed across products with highest quarterly disbursement of Rs 3,145 crore during Q2FY22.

Advances during the quarter grew 13% year-on-year to Rs 18,978 crore and 81.44% of the advances are secured loans,Equitas said.

Gross non-performing assets (NPAs), however, increased to 4.64% in Q2FY22 versus 2.39% a year ago.

Net NPAs were at 2.37%, up from 1.09% in the year-ago quarter.

Provisions for bad loans and contingencies for the quarter were higher at Rs 137.81 crore from Rs 75 crore. Provision coverage ratio stood at 50.09%.