Satin Credit care Q1 Results: Net profit up 20% at Rs 105 crore
Satin Creditcare Network's consolidated net profit for the June quarter stood at Rs 105 crore against Rs 88 crore in the year ago period, reflecting a 20% year-on-year rise, despite a muted quarter and higher delinquencies.
Operating profit jumped 60% at Rs 213 crore as compared with Rs 133 crore for the same period, helped by a 38% rise in net interest income at Rs 383 crore.
«The rise in yield which outpaced the rise in financial cost (year-on-year) helped the profitability,» Satin chairman HP Singh told ET.
Satin's net interest margin — the difference between gross yield and financial cost ratio — stood at 13.02% for the quarter, as compared with 13.78% for the preceding quarter and 11.93% in the year ago period.
The loan-loss ratio however rose to 2.63% against 0.69% a year back.
«We stopped onboarding new-to-credit customers in 200 of our branches out of 1300 six months back as this set of customers were showing higher default possibility,» Singh said.
The lender's consolidated assets under management grew 23% year-on-year to Rs 11706 crore at the end of June while it disbursed Rs 2114 crore during the quarter as compared with Rs 2122 crore in the corresponding period last year.
The consolidated balance sheet includes the numbers from two subsidiaries — Satin Housing Finance and Satin FinServ, which is the arm to lend to micro small and medium enterprises. The housing company has Rs 769 crore of AUM while the MSME arm has Rs 452 crore.
The consolidated gross NPA rose to 2.71% at the end of June from
