“This quarter (Q1 FY22) was challenging for us in terms of profitability. With two months of lockdown, disbursement also took a hit and collection efficiency was also down,” its Chairman and Managing Director HP Singh said.
Disbursements in the quarter stood at Rs 282 crore as compared to Rs 67 crore in the same period a year ago.
The lender adopted a cautious approach in its new disbursals on account of rising COVID infections and the resultant economic impact due to the second wave of the pandemic, a release said.
Net interest income (NII) in June quarter increased to Rs 180 crore from Rs 152 crore in the year-ago period.
Cumulative collection efficiency for Q1 FY22 stood at 82 per cent, excluding Assam at 84 per cent.
Singh said post June quarter, things have started to improve and collection efficiency at the start of August was close to 90 per cent.
“Things are coming back to the pre-COVID levels. As the income generating capacity comes back to stability, our collection efficiency will see an upward trend from here,” he said.
Gross non-performing assets stood at 9.7 per cent and net NPA at 1.2 per cent.
On account of COVID-19 outbreak, the lender made more than adequate provisioning of 8.4 per cent.
Under the Reserve Bank of India’s Resolution Framework 2.0, it restructured 18,735 loans related to individuals and small businesses amounting to Rs 43.4 crore.
Capital adequacy for the quarter stood at 24 per cent. It raised Rs 222 crore in April-June period.
Asset under management (AUM) fell to Rs 7,464 crore during the quarter from Rs 8,119 crore in the year-ago period. The lender expects an AUM growth of 8-10 per cent during 2021-22. Its scrip closed at Rs 83.65, down 1.76 per cent on BSE.
