Satin Creditcare Network Q2 results: Net profit falls 70% to Rs 16 crore

Kolkata: Microfinance firm Satin Creditcare Network has reported 70% fall in net profit for the September quarter on higher Covid-19 related provisioning and significantly lower loan disbursement.

Net profit for the quarter was Rs 16 crore against Rs 54 crore in the year ago period. Pre-provisioning operating profit was Rs 80 crore against Rs 91 crore in the same period.

Loan disbursement fell by a third to Rs 632 crore against Rs 1819 crore in the year ago period as the unlocking was gradual.


Satin chairman HP Singh however expressed hopes for better prospects in the next two quarters. "We witnessed progressive recovery playing out across sectors with Covid-19 related concerns moderating with each passing day," Singh said, adding that the demand scenario looks promising in the festival season. "Microfinance being a part of this ecosystem is also expected to benefit from this positive momentum," he said.

Satin's gross non-performing assets ratio stood at 2.9% at the end of September. It's provision has covered 3.9% of its loan assets, bringing the net NPA ratio to a negative 1 (-1%) from 1.8% in the year back.

The MFI's collection efficiency improved to 94% at the end of September from 62% three months back.