Total interest income fell 3 per cent to Rs 1091 crore from Rs 1122 crore a year ago. While impairment costs increased two and a half times to Rs 199 crore from Rs 68 crore a year ago.
The company however said that a recovery across most macro-economic indicators following the second wave of the Covid-19 pandemic, aided by the increased pace of vaccinations and an above-normal monsoon augurs well for the rest of the fiscal.
“Every month in the second quarter has seen improvement on both business growth and collections. The vicious second wave appears behind us. That said, overall recovery to a new normal will take time. Customer sentiment has significantly improved, and the second half of the year will likely see broad-based recovery,” said Harsha Viji, executive vice-chairman, SFL.
The company provides financing for commercial vehicles, cars& utility vehicles, tractors and farm equipment, construction equipment and SMEs. It also has insurance and asset management subsidiaries.
On a standalone basis, disbursements for Q2 FY22 grew 14 per cent to Rs.3,621 crore up from Rs. 3,174 crore a year ago.
Assets under management stood at Rs.29,811 crores as on 30th September 2021 slightly down from the Rs.29,823 crore reported on June 2021. The total restructured assets were Rs.2,087 crores, about 7.17 per cent of the loan outstanding as of 30th September 2021.
Gross NPA as of 30 September 2021 stood at 3.85 per cent down from 4.59 per cent as of 30th June 2021 but higher than the 2.44 per cent reported 30 September 2020.
