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Shriram City Union Finance has posted an 8 per cent growth in standalone net profit for the first quarter of FY22 at ₹208 crore. The company’s net profit for the same period last year stood at ₹192 crore.
The total income of the NBFC grew marginally to ₹1,496 crore during the April-June quarter as against ₹1,415 crore in the year-ago quarter.
“During this quarter, the company has implemented resolution plans to relieve Covid-19 pandemic related stress of eligible borrowers under Covid-19 Resolution Framework 2.0 in terms of RBI Circular dated May 5, 2021, following board-approved policy. The total amount outstanding as on June 30, 2021 is ₹195.71 crore wherein relief was extended to 713 accounts,” the company said in its quarterly results filed with the exchanges.
The company has considered an additional Expected Credit Loss (ECL) provision of ₹3.47 crore on account of Covid-19 during the quarter ended June 30, 2021. As of June 30,2021, additional ECL provision on loan assets as management overlay on account of Covid-19 stood at ₹712.23 crore.
“The additional ECL provision on account of Covid-19 is based on the company's historical experience, collection efficiencies post completion of Moratorium period, scheme by Government of India, internal assessment and other emerging forward-looking factors on account of the pandemic. However, the actual impact may vary due to prevailing uncertainty caused by the pandemic,” it added.
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