Satin Creditcare Network reports 23 per cent fall in net profit

KOLKATA: Microfinance company Satin Creditcare Network reported a 23 per cent fall in net profit for the financial year ending March owing to higher credit cost on account of Covid-19.

Its net profit was at Rs 155 crore in FY20 as compared with Rs 201 crore in the preceding fiscal. Credit cost on account of the COVID-19 amounted to Rs 82.76 crore, the company said.

Operating profit grew 16 per cent to Rs 434 crore as compared with Rs 374 crore for the same period.

Its asset under management grew 15.6 per cent to Rs 8,174 crore at the end of March over Rs 7,068 crore in the year back. Micro loans accounts for about 93 per cent of the business.

Satin chairman HP Singh said that although about 35 per cent of borrowers are looking opt for moratorium on loan repayment, most of them would eventually repay and therefore the credit loss can be restricted to below 5 per cent.

“As the impact of Covid-19 was felt towards the last fortnight of the financial year 2020, we saw some impact on our performance for the month of March & April 2020. However, with lockdown restrictions being eased out, we believe growth would return to normalcy in the coming quarters,” Singh said.

[Source – Economic Times]


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