SENSEX NIFTY
Jan 25, 2013, 03.32 PM IST | Source: Moneycontrol.com

Shriram Transport Q3 net up 14% on loan growth

Chennai-based Shriram Transport Finance (STF) reported 14% year-on-year rise in its third quarter (October-December, 2012-13) net profit at around Rs 350 crore, driven by robust growth in loan book. The company primarily lends to individual truck operators across the nation.

Moneycontrol Bureau

Chennai-based Shriram Transport Finance (STF) reported 14% year-on-year rise in its third quarter (October-December, 2012-13) net profit at around Rs 350 crore, driven by robust growth in loan book. The company primarily lends to individual truck operators across the nation.

Net interest income (NII) or the difference between interest earned and paid out, rose 11% to about Rs 890 crore.

Total asset under management or the loan book expanded nearly 19% y-o-y to Rs 46,550 crore.

During the quarter, the company's cost of borrowings upped by 16% to Rs Rs 742 crore. Provisions and loan write offs (bad debt) too went up from Rs 194 crore to Rs 214 crore. This suggests some sign of stress in asset quality.

On consolidated basis (including its subsidiaries), STF Q3 net profit climbed more than 19% to Rs 375 crore while NII increased 14% to Rs 950 crore.

Shriram Transport shares on Friday were up nearly 2% to close the day's trading at Rs 758 on NSE. In the last six months, those jumped nearly 35% on the speculation that the company is a strong contender for applying the new private banking license. Reserve Bank of India is likely to release the final guidelines soon.

saikat.das@network18online.com

Set email alert for

ADS BY GOOGLE

video of the day

Industrial recovery still away; like construction: HSBC

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.