Non-banking finance company Sundaram Finance Ltd has reported a 22 per cent growth in net profit at Rs 116 crore for the quarter ended June 30, 2013, against Rs 94.81 crore in the same period last year.
Loan disbursements for first quarter went up 15 per cent to Rs 2,799 crore from Rs 2,440 crore in the corresponding previous-year period.
Sundaram Finance has started adopting stricter provisioning norms from last year, whereby instalments that are overdue for 120 days and above are provisioned as against the regulatory requirement of 180 days and above.
Despite the stricter asset classification norms, Sundaram Finance continues to maintain its gross NPA at 1.53 per cent and net NPA at 0.92 per cent.
The deposit base crossed the Rs 1,500-crore mark during the first quarter and stood at Rs 1,540 crore as on June 30.
‘Outlook uncertain’
A press release from the company, quoting its Managing Director, T.T. Srinivasaraghavan, said: “The overall outlook remains uncertain. While our focus on the medium and heavy commercial vehicle segment continues, we will look to expand our presence in newer segments such as light commercial vehicles and tractors. As always, the emphasis is on growth with quality and profitability.”
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