The rise in net profit was buoyed by improvement in asset quality and business expansion. Net interest income rose 39% at Rs 251 crore.
“This is our highest ever quarterly profit, resulting in return on assets (RoA) of 4.9% and return on equity (RoE) at 20%. We are optimistic about maintaining this profitability trend,” HP Singh, chairman at Satin Creditcare Network, told ET.
The pre-provision operating profit jumped 94% at Rs 138 crore. The lender said its on-book provisions amounted to Rs 119 crore at the end of March, which is 2.1% of the on-book portfolio.
The lender’s asset quality improved over the quarters with gross non-performing assets ratio standing at 3.3% at the end of March against 8% a year ago. Singh expects NPA to improve further with steady recovery and expansion of books.
Its restructured book reduced to Rs 144 crore from Rs 1,151 crore as on September 2021. It wrote off Rs 45 crore in the quarter under review while recovered Rs 20 crore from the sticky loan portfolio.
The assets under management (AUM) for Satin grew 24% year-on-year to Rs 7,929 crore. Its quarterly disbursement of Rs 2,546 crore was the highest ever.Satin is comfortably placed in terms of capital with an adequacy ratio of 26.6%. It received Rs 137 crore out of Rs 225 crore of preferential allotment via issue of equity shares and fully convertible warrants till March. It will receive the balance Rs 83 crore by September, Singh said.
“We can grow at around a 25% rate without raising capital in the next one year from now,” he said.
Satin along with its subsidiaries has a consolidated AUM of Rs 9,115 crore.