“The pain has completely gone, allowing us to concentrate on building new business,” chairman HP singh told ET.
The NBFC-MFI’s restructured loans book now stands reduced at Rs 318 crore from Rs 1,151 crore, which was done to relieve borrowers after the pandemic. The reduction is due to Rs 495 crore of collections and Rs 338 crore of bad loan write-off.
Of the remaining Rs 318 crore of restructured accounts, repayments have normalised fully for loans worth Rs 197 crore, Singh said.
The total write-off stood at Rs 209 crore during the second quarter, totalling Rs 483 crore for the April-to-September period, helping the gross non-performing assets ratio fall to 3.96% at the end of September from 8.71% a year back.
The company said write-off of loans did not impact profitability in the second quarter.
The lender disbursed micro loans of Rs 1,568 crore during the quarter under review as compared with Rs 1,221 crore in the year-ago period. Assets under management grew 1.6% year-on-year to Rs 6,417 crore.
Satin is in the process of bolstering its Tier-I capital through a phased preferential allotment of equity shares and fully convertible warrants. The promoters have infused Rs 100 crore through this mechanism so far out of Rs 225 crore proposed infusion.
Its capital adequacy ratio stood at 24% at the end of the reporting cycle.
Satin, which borrows from banks and other institutions for on-lending, is said to have a comfortable liquidity with undrawn sanctions worth Rs 445 crore. Its total borrowings stood at Rs 5,254 crore, with bank loans accounting 66% of it, followed by overseas funds at 20%, non-bank lenders at 8% and the balance from others.