U GRO Capital reported an 80 per cent drop in its net profit for the second quarter of the fiscal at ₹3.37 crore compared to ₹17.17 crore in the same period last fiscal.

For the quarter ended September 30, 2021, its total revenue jumped up by 80.1 per cent to ₹62.7 crore from ₹34.82 crore a year ago.

Net interest income for the second quarter of the fiscal increased by 53 per cent to ₹31.7 crore compared to ₹20.7 crore in the second quarter of last fiscal.

Net interest margin improved 40 basis points Q-o-Q to 7.7 per cent largely due to reduction in the borrowing cost, U GRO Capital said in a statement on Wednesday.

However, total expenses also shot up by 80.1 per cent on a year-on-year basis to ₹57.98 crore in the second quarter of the fiscal.

The total provisioning as of September 2021 was ₹24.2 crore versus the regulatory requirement of ₹22.1 crore.

Disbursements for the quarter grew 139 per cent sequentially to ₹790 crore.

“The company clocked its highest ever disbursements in September 2021 at ₹288 crore,” it added.

“We will carry on the momentum and traction which is now coming because of the infrastructure we have built over last one year and we have a clear path of achieving our mission of serving 10 lakh customers and take one per cent market share of outstanding MSME credit in the country,” said Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital.