Micro finance company Satin Creditcare Network posted a consolidated net loss of 81 million in the June quarter.
Collection efficiency, an indicator of loan repayment, was below 82,
for the quarter. “Now it’s 90% again,” said Satin President HP Singh. “By September, business is expected to return to March levels, both in terms of collection efficiency and loan disbursement, with more people being vaccinated and the economy recovering,” he said.
Satins payouts for the quarter fell to Rs 282 crore compared to Rs 2,376 crore for the January-March period.
“The next two years will be a period of high growth,” said Singh.
The company’s consolidated loan portfolio was reduced to Rs 7.464 billion at the end of June from Rs 8.100 billion a year ago. His micro finance book cost Rs 6,450 crore versus Rs 7,100 crore.
“During the quarter we were cautious about our new payouts due to the increased infections and the resulting economic impact of the second wave of the Covid19 pandemic,” added Singh.
Results were negatively impacted by higher accelerated loan loss provisions due to gross non-performing assets increasing to 9.7%. The net defaults were 1.2%.
The company restructured 18,735 Rs.43.4 billion in loans related to individuals and small businesses.