Don’t miss the latest developments in business and finance.

Shriram Transport Finance declines after Q3 PAT falls despite higher NII

Image
Capital Market
Last Updated : Jan 25 2022 | 1:16 PM IST

Shriram Transport Finance Company slipped 1.23% to Rs 1140.35 after the company's standalone net profit declined 6.47% to Rs 680.62 crore despite an 8.76% increase in total income to Rs 4,832.33 crore in Q3 FY22 over Q3 FY21.

Net interest income (NII) rose by 11.16% to Rs 2,387.97 crore in Q3 FY22 from Rs 2,148.22 crore in Q3 FY21.

Cost to income ratio was at 19.85% in Q3 FY22 as compared to 22.00% in Q3 FY21.

Loan losses & provisions rose 46% YoY to Rs 984.27 crore in Q3 FY22 as against Rs 674.71 crore in the year ago quarter.

Gross stage 3 assets stood at 8.40% in Q3 FY22 as against 7.11% in Q3 FY21. Net stage 3 assets in the third quarter were at 4.36% as against 4.31% in the year-ago period.

The company emphasized that it has revised its process of NPA classification, flagging of the borrower accounts as overdue as part of the day-end processes for the due date, as per RBI's latest prudential norms.

More From This Section

The company had implemented resolution plans to relieve COVID-19 pandemic related stress to 39,410 borrower accounts amounting to Rs 1152.82 crore.

Out of the above, 3,308 borrower accounts with advance amount of Rs 68.75 crore have been settled and the balance outstanding as on 31 December 2021 of 36,102 borrower accounts was Rs 996.52 crore out of which 2.30% was in more than 90 days past due bucket.

Liquidity coverage ratio was 164.99% as on 31 December 2021.

Total assets under management as on 31 December 2021 was Rs 124,601.77 crore, up by 8.41% as compared to Rs 114,932.06 crore as on 31 December 2020.

The company's board has approved fundraising under the upsized $3.50 billion Global Medium Term Note Programme.

It has further approved raising of funds through public issue of redeemable NCDs in domestic market of up to Rs 10,000 crore.

The board has also accorded its approval to the issuance of redeemable NCDs/subordinated debentures on private placement basis for purpose of business of the company up to Rs 35,000 crore.

Shriram Transport Finance Company Limited is the flagship company of the Shriram Group. Shriram Transport is the largest asset financing NBFC in the country and holistic finance provider for the commercial vehicle industry.

Powered by Capital Market - Live News

Also Read

First Published: Jan 25 2022 | 12:49 PM IST

Next Story