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Shriram City Union Fin rises 8.2% to Rs 208 crore in June quarter

Gold loan disbursements rose 124 percent to Rs 1,454 crore during the quarter, as the pandemic forced cash-strapped people to seek gold loans, the company said.

July 30, 2021 / 08:49 PM IST
 
 
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Shriram City Union Finance on Friday reported an 8.2 percent rise in net profit to Rs 208 crore for the June 2021 quarter.

The Chennai-based non-banking financial company (NBFC) had registered a net profit of Rs 192 crore in the quarter ended June 2020.

Total income during April-June 2021 rose slightly to Rs 1,495.56 crore, from Rs 1,414.57 crore a year ago.

The company's assets under management (AUM) rose four percent to Rs 29,599 crore, the highest level since September 2019, it said in a statement.

Disbursements stood at Rs 4,560 crore at the end of the June 2021 quarter, 244 percent higher year-on-year on a low base but 30.6 percent lower sequentially, it added.

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Gold loan disbursements rose 124 percent to Rs 1,454 crore during the quarter, as the pandemic forced cash-strapped people to seek gold loans, the company said.

Personal loans and pre-owned two-wheeler loans showed a steady rise, with disbursements of Rs 602 crore and Rs 227 crore, respectively.

Asset quality improved, as the gross non-performing assets (Stage-3 accounts) fell to 6.91 percent of the gross advances, compared with 7.28 percent by June 2020.

With the expected credit loss (ECL) provision of Rs 1,055 crore in the first quarter of FY22, the total provision coverage ratio stood at 51.73 percent, Shriram City said.

Restructured loans were worth Rs 39 crore in the June 2021 quarter.

The company expects substantial rollbacks as lockdowns ease Q2FY22 onwards. The company has a liquidity back-up of Rs 4,439 crore at the end of the first quarter of FY22.

Shriram City MD and CEO Y S Chakravarti said, "The first quarter was affected due to lockdowns, while June-July has shown remarkable improvements and normalcy is expected in Q2FY22."

Chakravarti added that micro, small and medium enterprises (MSMEs) perceive access to finance as the most significant obstacle, and "we continue to bridge their funding gap while keeping a keen eye on quality originations".

Shares of Shriram City on Friday closed 2.07 percent higher at Rs 1,849.90 apiece on the BSE.
PTI
first published: Jul 30, 2021 08:49 pm
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