The spread of the second wave of Covid-19 pandemic has created challenges for every business. “We are anticipating the collections to witness a temporary decline in Q1 FY22 on account of several intermittent lockdowns/restrictions being imposed across various states,” managing director Udaya Kumar Hebbar said.
The lender wrote off Rs 318 crore during the fourth quarter while it made additional provision of Rs 112 crore.
Pre-provision operating profit jumped 83% at Rs 329 crore from Rs 180 crore. Total income grew 51% year-on-year at Rs 726 crore with net interest income rising 59% at Rs 464 crore.
Hebbar said that strong profitability was utilized to absorb accelerated write-offs and build additional provisioning buffers ahead of FY22.
The MFI’s gross loan portfolio grew by 13% year-on-year to Rs 13,587 crore while March-21 collection efficiency excluding arrears improved to 94%.
Gross non-performing assets ratio jumped to 4.43% at the end of March 31, 2021 compared with 1.5% a year ago. The company said its liquidity position remained robust with Rs 2,484 crore cash and cash equivalents. Capital adequacy ratio was at nearly 32% at the end of the reporting period.
