Satin Creditcare Network Q4 results: Company posts net profit of Rs 38 cr

MUMBAI: Microfinance institution Satin Creditcare Network Limited (SCNL) on Monday reported a profit after tax of Rs 38 crore in the quarter ended on March 31, 2021, against Rs 13 crore in the year-ago period.

For the full year, it reported a loss of Rs 14 crore as against a profit after tax of Rs 155 crore in FY20.

"March quarter was a lot better than the earlier quarters. The three months were practically back to pre-pandemic levels," its Chairman and Managing Director H P Singh said.

Disbursement in Q4FY21 stood at Rs 2,376 crore as compared to Rs 2,743 crore in the year-ago period. MFI disbursement stood at Rs 2,261 crore in the quarter.

In FY21, disbursement stood at Rs 4,982 crore as compared to Rs 8,976 crore in FY20. The decline in disbursement was due to Covid-19 induced lock down in the H1FY21, the lender said.

Considering the surge in cases in April 2021 with the advent of the second wave of the pandemic, the state wise lock down will have an effect on the Q1 FY22 performance, Singh said.

Its collections jumped to 105 per cent in March from 98 per cent in December. Collections declined to 93 per cent and further to 75-76 per cent in May due to restrictions in movement imposed by various states, Singh said.

"Since the lockdowns have started opening up in a phased manner, collection efficiency has started to come back again. But my sense is that may be in another 15-20 days it will start coming back to the 90 per cent level," he said.

For FY21, the micro lender's gross NPA stood at 8.4 per cent and net NPA stood at 3.3 per cent. It has made a cumulative total provision of Rs 289 crore of which Rs 44 crore have been recognised as on March 31, 2021 on account of significant increase in credit risk on customers given additional support by the company which were impacted due to COVID-19.

"The company has adequate liquidity and a strong balance sheet position which makes us well-positioned and agile to achieve growth over the medium to long term, while the demand remains strong," Singh said.

According to him, as the Covid-19 curve flattens, vaccination rate improves, and the local restrictions start to ease out, there will be improvement in repayment discipline and lower PAR (portfolio at risk).

Total borrowings stood at Rs 6,260 crore as on March 31, 2021.

The lender's housing finance subsidiary- Satin Housing Finance Ltd, has reached an asset under management (AUM) of Rs 226 crore. It has 100 per cent retail book comprising of 79 per cent affordable housing loans and 21 per cent of LAP (loan against property).