New Delhi, July 29 (KNN) In the aftermath of demonetization, lending institution Equitas Small Finance Bank that deals in credit to the Micro and Small enterprises, registered a downfall of 75 per cent in profits for the first quarter.

The bank’s profit figure stood at 25.59 crores in the first quarter while the profit registered in the previous year was around 61.7 crores.

In a press interview, P N Vasudevan, CEO and founder of Equitas, said that the main reason for the fall in profits is the incapability of its borrowers in repaying the loans after demonetization last year.

Most of the bank’s borrowers are the micro and small enterprises, which were not able to repay the loans. But the situation is getting better now and there are partial payments from the borrowers, he informed.

Also another reason for non-payment of loans is that in many states, the entrepreneurs were expecting relaxation and waivers from the government.

While the bank had negative trends in its microfinance portfolio, it was able to recoup in its new business segment that includes business loans, agri-loans, gold loans and loans to small and mid-corporates. (KNN/ DA)