Satin Creditcare Q3 results: Company reports net loss of Rs 82 cr

Satin Creditcare Q3 results: Company reports net loss of Rs 82 cr

KOLKATA: Microfinance company Satin Creditcare Network reported Rs 82 crore net loss in December quarter against Rs 48 crore net profit in the year ago period on higher provisions to cover the asset quality risks arising due to pandemic and repayment trouble in Assam.

Total income also fell to Rs 294 crore as against Rs 347 crore in the same period.

The company said it has provided Rs 159 crore during the quarter as the possible non-performing assets (NPA) would have been as high as 9.6% had not the Supreme Court stayed classification of bad loans temporarily to provide relief to stressed borrowers.

Gross NPA stood at 1.5% as the company has not recognized NPAs since August 31, following the court order. The company has identified such special mentioned accounts remained overdue more than 60 days and made provisions accordingly.

The company said that about 98% of its borrowers repaid loans in December but cumulative collection efficiency for the nine-month period remained at 92%.

It has highlighted an improvement in number of non-paying clients to less than 2% in January from 11% in September 2020.

Chairman HP Singh said that business momentum improved driving asset under management 8% higher year-on-year to Rs 7,880 crore.

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