New Delhi, Aug 11 (PTI) ESAF Small Finance Bank on Friday posted a 23 per cent increase in net profit to Rs 130 crore for the June quarter helped by a rise in interest income and a decline in bad loans.

The operating profit -- net profit plus provisions and contingencies -- grew 33 per cent to Rs 301 crore in the first quarter of the current fiscal from Rs 225 crore in the year-ago period, the Kerala-based lender said in a statement.

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The bank's net interest income -- interest income minus interest expenditure -- increased by 30 per cent to Rs 585 crore in the quarter from Rs 449 crore a year ago.

The bank's gross bad loans, or non-performing assets (NPAs), declined to 1.65 per cent of gross advances at the end of June as against 6.16 per cent in the year-ago period.

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Similarly, net NPAs, too, slipped to 0.81 per cent from 3.78 per cent in the same quarter a year ago.

The bank's capital adequacy ratio stood at 20.56 per cent at the end of the June quarter.

"We remain committed to sustainable growth and community development," ESAF Small Finance Bank Managing Director K Paul Thomas said.

With a focus on innovation, growth, and customer-centric solutions, ESAF Bank continues to contribute to the financial ecosystem and drive economic development, he said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)