The company retained its leadership position in two-wheeler finance, V Lakshmi Narasimhan, ED & Head of Investor Relations, Shriram City Union.
Shriram City Union Finance reported a reasonably good third quarter.
The net interest income was up 20 percent at Rs 915.7 crore versus Rs 762.4 crore for the same quarter last fiscal. The year on year net profit was up 43 percent at Rs 225.5 crore versus Rs 157.7 crore.
The quarter on quarter (QoQ) gross NPA came in at 6.77 percent as against 6.91 percent. The net NPA came in at 1.76 percent versus 1.83 percent and the provision coverage ratio stood at 74 percent versus 73.6 percent.
V Lakshmi Narasimhan, ED & Head of Investor Relations, Shriram City Union throwing more light on the third quarter and outlook going forward said the growth in assets under management (AUM) were stable around 16 percent but the highlight was that the demonetisation related impact on SME seems to be behind, which helped drop the credit costs by 60-70 basis points.
Expect the company to come back to normal in terms of growth in terms of lower credit cost going forward.
The other good thing was the company retained its leadership position in two-wheeler finance, which saw a YoY growth of 35 percent in this quarter.
With regards to disbursement, he said they would remain stable for SME around Rs 800-900 crore a month and for 2-wheeler segment around Rs 450 crore a month, said Narasimhan. The personal loan segment is also growing very well, on back of cross-sell model in place, he said.Therefore, for Q4FY18 the disbursement would be around Rs 7000-7500 crore.