Bharat Financial Inclusion, formerly SKS Microfinance, posted a net loss of ₹37 crore in the first quarter ended June 30, 2017 due to higher provisioning and costs.
In the corresponding quarter of the previous financial year, it earned a profit of ₹236 crore.
The loss in the quarter under review was “in view of its conservative provisioning norms” in which it recognises non- performing assets (NPAs) on approximately 60 days overdue basis compared to the RBI policy of 90 days, according to a release issued here on Wednesday.
Also, it provides against principal outstanding as compared to the RBI’s policy of providing only against overdue instalments.
The total revenue grew 11.8 per cent to ₹463 crore in the quarter under review compared to ₹414 crore in the year-ago period. Total expenses rose 81.8 per cent to ₹500.13 crore. The provisions increased to ₹176 crore (₹12 crore).
“Our strong collection efficiency for loans disbursed post-demonetisation reiterates the strength of our unique operating model,” MR Rao, Chief Executive Officer and Managing Director, said in a release.