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Shriram Transport Finance Company (STFC) has reported a 8 per cent drop in its second quarter net profit due to higher provisions for bad debts and lower income from securitisation.
In the three-month period ended September 30, 2014, the transport finance company posted a net profit of Rs 302 crore against Rs 327 crore, a year ago.
The non-banking finance company’s gross NPA rose to 3.74 per cent during the period from 3.27 per cent of the total loans in the year-ago quarter.
On an absolute basis, the Mumbai-based company’s non-performing loans rose to Rs 1,674 crore from Rs 1,254 crore.
Umesh Revankar, Managing Director, STFC, said, “The NPA levels are likely to stay elevated for another two quarters before things start improving.”
During the quarter, the company had set aside Rs 307 crore as a cover against bad loans (Rs 249 crore, a year ago).
Shares of the company were trading down 2.45 per cent at Rs 900.60 per share on the BSE at 1.30 p.m. local time.
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