Satin Creditcare Network reports 51% rise in consolidated net profit at Rs 57 crore

Kolkata: Microfinance lender Satin Creditcare Network reported a 51% rise in consolidated net profit at Rs 56.9 crore for the quarter ending March 31 over Rs 37.8 crore in the year ago period, owing to reversal of bad loan provisions to the tune of Rs 80 crore, chairman HP Singh told ET.

The lender's consolidated net interest margin for the year improved to 9.25% from 8.9% in the preceding year.

Operating profit was however 31% lower at Rs 76 crore over Rs 110 crore.


Its total income for the period was lower at Rs 364 crore over Rs 406 crore in the year-ago quarter. Its quarterly disbursement at Rs 1900 crore was also lower than year-ago period's Rs 2400 crore. Assets under management stood at Rs 7617 crore at the end of March against Rs 8379 crore a year back.

"We expect 25-30% growth in AUM this fiscal as the pandemic is behind us. We don't need fresh capital this year as the existing base is good enough for a 30% growth," Singh said.

"Our target is to on-board new customers this fiscal in the 23 states we are present, rather than expanding in newer geographies," he said.

Asset quality of the lender improved with gross non-performing assets ratio being at 7.5% at the end of March from 8% at the end of year-ago period.

On a full-year basis, the lender made a consolidated net profit of Rs 21 crore against a loss of Rs 14 crore.