Shriram Transport Finance Company (STFC) on Friday said its net profit increased marginally by 5 percent to Rs 321.11 crore in the first quarter ended June 30 as the commercial vehicle financier's bottomline was dented by an increase in non-performing loans. The company had reported a profit after tax of Rs 306 crore in the same period last year. "Although growth in profits was on account of higher loan disbursements but our non-performing loans increased, which had put pressure on profitability," STFC Managing Director and CEO Umesh Revankar said.
Total disbursement increased to Rs 9,200 crore in the April-June period from Rs 7,500 crore in the year-ago quarter. Gross NPL level increased 4.07 percent from 3.74 percent. The net interest income stood at Rs 1,150.67 crore as against Rs 967.59 crore in the year-ago period.
Total assets as on June 30 was at Rs 60,531.72 crore as against Rs 54,379.62 crore in the year-ago period. Revankar said the company has enough liquidity and may not raise funds on immediate basis.
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