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Sundaram Finance Ltd (SFL) reported 10 per cent increase in standalone net profit at ₹211 crore for the quarter ended September 30 compared with ₹192 crore in the year-ago quarter.
The leading NBFC’s interest income was almost flat at ₹861 crore (₹862 crore in the year-ago quarter), while total income was higher at ₹1,025 crore (₹998 crore).
Total expenses were at ₹747 crore (₹744 crore).
“Every month in the second quarter has seen improvement on both business growth and collections. The vicious second wave appears behind us. That said, overall recovery to a new normal will take time. Customer sentiment has significantly improved, and the second half of the year will likely see broad-based recovery,” Harsha Viji, Executive Vice-Chairman, SFL, said in a statement.
Total disbursements grew 14 per cent at ₹3,621 crore(₹3,174 crore). With a net accretion of ₹104 crore, the deposit base stood at ₹4,125 crore as of September quarter.
RBI resolution framework
Pursuant to RBI’s notification on Resolution Framework 2.0 related to advances to customers, assets totalling ₹781 crore, about 2.68 per cent of loan outstanding, were restructured during the first half of this fiscal. The total restructured assets were ₹2,087 crore, about 7.17 per cent of loan outstanding as on September 30.
As on September 30, gross stage 3 assets stood at 3.45 per cent with provision cover of 39 per cent compared with 4.25 per cent with 27 per cent provision cover as of June 30. Net stage 3 assets closed at 2.12 per cent against 3.12 pre cent as of June 30, 2021.
Gross NPA and net NPA stood at 3.85 per cent and 2.48 per cent respectively as on September 30, compared with 4.59 per cent and 3.38 per cent respectively as on June 30. In the year-ago quarter, gross NPA and net NPA stood at 2.44 per cent and 1.44 per cent respectively as of September 30, 2020.
The assets under management stood at ₹29,811 crore (₹30,572 crore) and ₹29,823 crore as on June 30, 2021.
“We have made good progress on both growth and asset quality in the second quarter. While stress continues in Covid-impacted sub-sectors, we remain focused on supporting our customers in resuming their business activity from the disruptions imposed by the pandemic. Despite supply challenges due to the global chip shortage, demand is improving across asset classes,” said Rajiv Lochan, Managing Director of the company.
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