New Delhi, Sep 2 (PTI) Satin Creditcare Network Ltd (SCNL) on Wednesday reported 69 per cent decline in consolidated net profit at Rs 13 crore for the quarter ended June 30, 2020.
The microfinance lender had a net profit of Rs 41 crore in the same quarter a year ago.
Profits and return ratios were impacted due to higher credit cost made on account of COVID-19, nationwide lockdown, and other external factors during the quarter, SCNL said in a regulatory filing.
Total income during April-June, 2020-21 also fell to Rs 310.55 crore as against Rs 353.16 crore in the same period of 2019-20. In March quarter, total income was Rs 409.26 crore. Net Interest Income (NII) was down by 25 per cent at Rs 150 crore from Rs 199 crore.
Assets Under Management (AUM), however, rose by 14 per cent to Rs 8,119 crore as on June 30, 2020 from Rs 7,139 crore by the year-ago same period, it said.
During June quarter, microfinance disbursements stood at Rs 54 crore, which were impacted on account on lockdown.
As on June 30, 2020, the assigned portfolio stood at Rs 2,009 crore and the Business Correspondence (BC) through IndusInd Bank (in the SCNL book) stood at Rs 519 crore.
During the quarter, the board of directors of the company approved fund raising through rights issues of 1,99,82,667 equity shares for an issue size of Rs 120 crore. The issue was oversubscribed.
The company is going to use the proceeds for augmenting capital base to meet future capital requirements and funding requirements for growth of business and operations and general corporate purposes, SCNL said.
The company's capital base is strong with capital to risk weighted asset ratio (CRAR) of 31.09 per cent and well above the regulatory requirements. The company continues to maintain a healthy balance sheet liquidity with Rs 1,652 crore.
Total borrowing as on June 30, 2020 was Rs 5,326 crore, it said.
'The company's reliance on NBFC funding is further reduced to 4 per cent from 10 per cent last year which has significantly reduced its reliance on higher cost of funding. 59 per cent of our borrowings are from banks and we have raised Rs 330 crore in Q1FY21,' SCNL said.
The lender said 11 per cent of the borrowers opted for complete moratorium as at end-June 2020. For July and August, collection efficiency for the entire month stood at 85 per cent of the monthly demand.
'The quarter gone by was full of challenges...Despite these challenges we have showcased improving trajectory in our asset quality and have delivered a sequential improvement of 50 basis points in our GNPA (gross non-performing assets) which stood at 2.4 per cent as of June 30, 2020.
'Now with lockdown restrictions being lifted in major parts of the country and economic activities progressing towards normalcy, we are getting progressive responses both on collections and disbursements activities with each passing day. We expect coming quarters to be much better and robust both on financial and operational aspect,' said HP Singh, Chairman & Managing Director, SCNL.
Satin Creditcare counter closed nearly flat at Rs 77.05 apiece on BSE. PTI KPM KPM ANU ANU