U GRO Capital reported a 46.1 per cent drop in its net profit in the third quarter of the fiscal to ₹3.38 crore from ₹6.27 crore in the third quarter of last fiscal.

For the quarter ended December 31, 2021, its total income surged by 118 per cent year on year to ₹85.25 crore. Net interest income for the third quarter of 2021-22 stood at ₹39.5 crore compared to ₹23.3 crore a year ago. The total provisioning as of December 31, 2021 stood at ₹33.2 crore versus the regulatory requirement of ₹26.9 crore. “The company has done additional provision of ₹2.7 crore as management overlay provision to provide for future contingencies in view of third wave of Covid in early January of this year,” the MSME lending fintech platform said in a statement on Wednesday.

Resignations

It further said that it clocked its highest ever disbursements in December 2021. “Disbursements for the quarter stood at ₹1,053 crore registering a quarter on quarter growth of 33.1 per cent and a year on year growth of 186.1 per cent,” it said. Gross NPA was at 2.4 per cent and net NPA at 2 per cent as on December 31, 2021 compared to 2.3 per cent and 1.4 per cent a year ago.

Meanwhile, the company also informed the stock exchanges that its board has accepted the resignations of Navin Kumar Maini, Ranjana Agarwal and Navin Puri as Independent Directors from close of business hours on February 8, 2022.

This follows the RBI Master Circular- Loans and Advances – Statutory and Other Restrictions under which banks are restricted from advancing credit facilities in excess of ₹5 crore to any company in which any of the directors of other banks is a director without approval of the lending bank’s Board of Directors/Management Committee.

“In view of this, the board deliberated the concern in detail and as a solution it requested the Independent Directors who are also Independent Director on the board of banks to consider relinquishing their directorship from the banks or to relinquish their position on the board of the company as Independent Directors in the best interest of the company,” it said.

Based on the recommendations of the NRC, the board has also approved appointment of Karnam Sekar, Ex Chairman of Indian Overseas Bank and Hemant Bhargava, Ex Chairman of Life Insurance Corporation of India as Additional Independent Directors of the company with immediate effect, from February 8, 2022, it further said.

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