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Shriram Transport Finance Company (STFC) reported a 6 per cent year-on-year (y-o-y) decline in standalone net profit at ₹681 crore in Q3 against ₹728 crore in the year-ago quarter.
The company emphasised 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.
Loan losses & provisions rose 46 per cent y-o-y to ₹984 crore (₹675 crore in the year ago quarter).
Had the company followed earlier method, the profit before tax for the quarter and nine months ended December 31, 2021, would have been higher by ₹354.75 crore, STFC said in a statement.
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Broader market under heavy selling pressure; Volatility index rises above 22Net interest income was up 11 per cent y-o-y to ₹2,388 crore (₹2,148 crore in the year-ago period).
Total Assets under Management as of December-end were up about 8 per cent to ₹1,24,602 crore as compared to ₹1,14,936 crore as of December-end 2020.
Gross stage 3 (credit impaired) assets, taking into account the revision in NPA recognition as per RBI’s November 2021 circular, rose 27 per cent y-o-y to ₹10,358 crore as of December-end 2021.
Net Stage 3 assets increased by 7 per cent y-o-y to ₹5,153 crore against ₹4,804 crore.
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