Microfinance firm Satin Creditcare Network reports Rs 81 crore net loss in June quarter

Microfinance firm Satin Creditcare Network has reported a consolidated Rs 81 crore net loss in the June quarter on account of higher credit cost as its borrowers faltered loan repayment amid the pandemic-led stress.

Collection efficiency, a gauge for repayment of loans, was lower at 82 during the quarter under review.

"It is now back to 90%," Satin chairman HP SIngh said. "By September, business is expected to be back to March level both in terms of collection efficiency and loan disbursement with more population getting vaccinated and the economy rebounding," he said.

Satin's disbursements for the quarter fell to Rs 282 crore as compared with Rs 2,376 crore in the January-March period.

"The next two years would be a period of high growth," Singh said.

The firm's consolidated loan portfolio shrunk to Rs 7464 crore at the end of June against Rs 8100 crore a year back. Its microfinance book stood at Rs 6450 crore as against Rs 7100 crore.

"During the quarter we have adopted a cautious approach in our new disbursals on account of rising infections and the resultant economic impact due to the second wave of the Covid-19 pandemic," Singh added.

Its bottomline impacted with higher accelerated provisioning given the rise in gross non-performing assets to 9.7%. Net NPA stood 1.2%

The firm Restructured 18,735 loans amounting to Rs 43.4 crore related to individuals and small businesses.