Money & Banking

Shriram City Union Finance posts 10% growth in Q2 net profit

Our Bureau Mumbai | Updated on October 28, 2021

NBFC declares an interim dividend of 100 per cent

Shriram City Union Finance has reported a 10 per cent year-on-year (y-o-y) increase in second-quarter standalone net profit at ₹282 crore, against ₹257 crore in the year-ago quarter.

The board of directors of the non-banking financial company, whose product segments include small enterprise finance, two-wheeler loans, loan against gold and personal loans, among others, have declared an interim dividend of 100 per cent (₹10 per equity share of face value ₹10 fully paid) for the financial year 2021-22.

Net interest income (interest income less finance costs) was up about 6 per cent y-o-y to ₹899 crore (₹851 crore in the year-ago quarter).

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Fee and commission income rose 80 per cent y-o-y to ₹18 crore (₹10 crore) and bad debts recovery soared 200 per cent y-o-y to ₹51 crore (₹17 crore).

Net interest margin increased to 12.91 per cent as at September-end 2021, against 12.58 per cent as at September-end 2020.

Loan disbursements jumped about 110 per cent y-o-y to ₹6,423 crore (₹3,061 crore). Assets under management rose 10.5 per cent y-o-y to ₹30,425 crore (₹27,537 crore).

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The NBFC said pre-provision profit at ₹579 crore is its highest in 12 quarters.

Gross stage 3 assets (credit-impaired loans) position improved to 6.86 per cent of gross advances as at September-end 2021, against 6.91 per cent as at June-end 2021. However, they were up vis-a-vis the September-end 2020 level of 6.67 per cent.

Net stage 3 assets edged up a shade to 3.47 per cent of net advances vis-a-vis 3.46 per cent in the preceding quarter. These assets were at 3.16 per cent as at September-end 2020.

The company’s consolidated (including results of Shriram Housing Finance) net profit increased by 9 per cent to ₹301 crore (₹275 crore).

Consolidated AUM rose about 14 per cent y-o-y to ₹34,680 crore (₹30,316 crore).

Published on October 28, 2021

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