Satin Creditcare Network posts Q1 net loss of Rs 81 crore

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Microfinance lender Satin Creditcare Network Ltd (SCNL) on Monday reported a net loss of Rs 81 crore for June quarter 2021-22 as disbursements and collection got impacted due to the second wave of Covid-19.   It logged a profit of Rs 13 crore in the year-ago period.

“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%, excluding Assam at 84%. Singh said post June quarter, things have started to improve and collection efficiency at the start of August was close to 90%