Microfinance company Satin CreditCare Network on Monday reported a 33% year-on-year jump in March quarter standalone net profit at Rs 125 crore, backed by robust business and revenue growth.
The net profit was Rs 94 crore in the year ago period.
The lender’s net interest margin for FY24 was at 13.2%, exceeding its guidance of 12-12.5%.
Its interest income was 55% higher year-on-year at Rs 492 crore against Rs 318 crore earlier with assets under management expanding 34% in FY24 to Rs 10593 crore.
“The microfinance sector is growing steadily with robust demand coming from small borrowers especially from the farming community. However, going forward, it will be important for us to maintain healthy portfolio quality and credit cost under control,” Satin chairman HP Singh said.
Satin’s credit cost for the year was 1.44% of total portfolio while it looks to maintain it under 1.5%. Its asset quality improved with gross non-performing assets ratio falling to 2.49% at the end of March as compared with 3.28% a year ago.
“We have sufficient on-book provisions amounting to Rs 164 crore as on March 31, 2024, which is 2.1% of on-book portfolio, exceeding the RBI-mandated provision requirement of Rs 148 crore,” the company said in a regulatory filing to stock exchanges.
For the full FY24, its net profit stood at Rs 423 crore, which it said was the highest ever and representing a 60% rise. The lender said it disbursed over Rs 10,000 crore during the year, which is a record till date, backed by 6.3 lakh addition of borrowers taking the total count to 34.7 lakh.
