KOLKATA: Microfinance firm Spandana Sporty Financial on Saturday reported a 53 per cent decline in its consolidated net profit for the June quarter compared to the same period last year due to rising delinquencies.
Net profit stood at Rs 557 million against Rs 1,195 million in the same period last year.
However, operating profit grew 52% year-on-year to Rs 2.87 billion as net interest income grew 47% to Rs 4.25 billion.
“Q1 FY was a tough quarter for us. Protracted seven-phase general elections, severe heatwave across the country and higher attrition in certain geographies posed challenges to the quality of the portfolio,” Managing Director Shalabh Saxena said.
The company’s gross non-performing assets ratio rose 97 basis points to 2.6 percent as of end-June from 1.63 percent a year ago. The company said its provision coverage ratio remained at 79.7 percent. Assets under management grew 32 percent year-on-year to Rs 1,172.3 crore.
