Satin Creditcare Network Q2 Results: Net profit soars 89% YoY to Rs 103 crore
Satin Creditcare Network's net profit zoomed 89% at Rs 103 crore, on the back of lower credit costs and business expansion.
The lender's net interest margin for the quarter was at 13.5%, above the annual guidance of 12.1-12.5%, chairman HP Singh said. Credit cost came down to 1.2% for the period from about 5% a year back.
«We have observed a strong second quarter, surpassing the Rs 10,000 crore AUM and recording the highest ever profitability in the last five years,» Singh said.
Satin's gross non-performing assets ratio stood at 2.38% at the end of September as compared with 3.96% a year back.
The portfolio originated from July 2021 onwards which formed about 96% of the on-book microfinance portfolio has shown good recovery with just 1.5% of the portfolio not repaid on time.
The lender has provisions of Rs 124 crore which is 1.9% of the on-book portfolio. Collection against write-offs was Rs 28 crore, which was added to the profit.
Singh said the company would look to raise up to Rs 300 crore in equity in December either through qualified institutions placement (QIP) or by way of preferential allotments.
The board approved the fundraising plan last week. It has also approved a plan to raise Rs 100 crore in debentures.
