Fintech company, U GRO Capital, has reported a net profit of Rs 6.9 crore in the quarter ended December 2019, when compared to a loss of Rs 3.3 crore in Q2 FY20.

This makes U GRO Capital the first fintech company to report a net profit within its first full year of commercial operations, having started disbursals only in January 2019.

Given the current macroeconomic conditions and the negative sentiments engulfing NBFCs, this is a commendable performance, Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital, said.

"Our credit underwriting continues to be conservative in response to rising NPAs in the market, and we are seeing the fruits of this approach as portfolio performance continues to be excellent, with GNPA at less than 0.1 per cent," Nath added.

The company’s total income increased to Rs 23.7 crore in Q3 FY20, a 15.4 per cent growth when compared to the Rs 20.5 crore it posted in Q2 FY20.

The company’s AUM as of the end of December 31, 2019, stood at Rs 753 crore across 7,512 loans. The loan book is 67 per cent secured and the largest sectoral and geographical concentrations stand at 18 per cent and 21 per cent respectively, it said.

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