Sundaram Finance Q1 PAT rises 16%

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August 10, 2021 1:17 AM

Disbursements recorded a growth of 122% to Rs 2,060 crore, compared to Rs 929 crore in the corresponding quarter of the previous year. Gross stage Ill assets as on June 30, 2021 stood higher at 4.25%, against 2.44% as on June 30, 2020, primarily due to the impact of the second wave-induced lockdown.

sundaram financeThe capital adequacy ratio stood at 23.5% (tier I -16%) as compared to 17.7% (tier I -12.7%) .

Sundaram Finance (SFL) has reported a 16% rise in its profit after tax to Rs 192 crore for the first quarter of the current fiscal, against Rs 166 crore in the year-ago period. Total income of the Chennai-based NBFC grew marginally to Rs 956 crore from Rs 952 crore.

Disbursements recorded a growth of 122% to Rs 2,060 crore, compared to Rs 929 crore in the corresponding quarter of the previous year. Gross stage Ill assets as on June 30, 2021 stood higher at 4.25%, against 2.44% as on June 30, 2020, primarily due to the impact of the second wave-induced lockdown.

Rajiv Lochan, MD, SFL, said: “As activity resumed in July, we have witnessed a strong recovery in our collections and recovery efforts as well as disbursement activity across most regions. The strength of our customer relationships and the quality of our credit filters have stood us in good stead. While uncertainties around a third wave remain, the pace of vaccination and our own readiness in adjusting to a post-Covid world give us optimism and confidence about the journey ahead.”

Following RBl’s notification on resolution framework 2.0 related of advances to customers, assets totaling Rs 88 crore, about 0.31% of principal outstanding, were restructured in June 2021. The total restructured assets were at Rs 1,395 crore, about 4.87% of principal outstanding as on June 30, 2021.

The assets under management stood at Rs 29,823 crore as on June 30, 2021, compared with Rs 29,580 crore as on June 30, 2020. The capital adequacy ratio stood at 23.5% (tier I -16%) as compared to 17.7% (tier I -12.7%) .

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