Shriram Transport Finance (STFC) on Friday reported a 13 per cent jump in standalone profit after tax at Rs 771.24 crore for the quarter ended September.
The non-banking finance company had reported a standalone profit after tax of Rs 684.56 crore in the year-ago quarter.
Its Managing Director and CEO Umesh Revankar attributed the growth in profit to higher net interest income and absence of COVID-related provisioning during the quarter.
"In the first quarter, we had made COVID-related provisioning but in the second quarter we didn’t feel the need for provisioning,” he said.
In Q1 FY2022, the COVID-19 provisions stood at Rs 261.02 crore, as per the firm’s investor presentation.
Net interest income rose by 8.28 per cent to Rs 2,192.82 crore in Q2 FY 22 as against Rs 2,025.22 crore in the same period of the previous year.
Gross stage 3 assets stood at 7.82 per cent as against 6.50 per cent in the year-ago period.
In Q1 FY2022, gross stage 3 assets were at 8.18 per cent.
Net stage 3 assets were at 4.18 per cent as against 3.69 per cent.
The collections for the months of July, August and September were at 98.05 per cent, 99.56 per cent and 99.49 per cent, respectively, the lender said.
It has implemented resolution plans to relieve the pandemic-related stress of eligible borrowers in 16,675 accounts (Q1 — 10,257 and Q2 — 6,418), with a total outstanding of Rs 608.67 crore.
Revankar expects the third and the fourth quarters of the current financial year to be good in terms of demand and also sees asset quality improving further.
Total assets under management were at Rs 121,646.77 crore as on September 30, 2021, compared to Rs 113,345.93 crore on September 30, 2020.The bank’s scrip ended at Rs 1,437.90 apiece, down 3.51 per cent on BSE on Friday.