Microfinance institution, Satin Creditcare Network Limited (SCNL), on Monday, reported a profit after tax (PAT) of Rs 38 crore in the quarter ended on March 31, 2021, against Rs 13 crore in the year-ago period. For the full year, it reported a loss of Rs 14 crore as against a PAT of Rs 155 crore in FY20.

Its collections jumped to 105 percent in March from 98 percent in December. However, HP Singh, CMD of the company, said that collection efficiency in Q1FY22 has taken a hit due to the second wave of COVID-19.

“In March, before the second wave, it was back to pre-pandemic levels. But after the second wave and lockdowns being announced by several states, the collection efficiency did take a hit,” he said in an interview to CNBC-TV18.

Singh further added that as the COVID restrictions are easing up now, the collection efficiency is improving.

“April was about 93-95 percent collection efficiency, but May was a dip. So, the collection efficiency went down to about 75 percent because of the lockdown announced by several states. Now that it has started opening up, the efficiency is back to about 80 percent in the last one week or so,” he explained.

He also said that as no moratorium has been given, there will be restructuring this time. However, he does not expect the restructuring numbers to be very bad.

The disbursements for the company in Q4FY21 stood at Rs 2,376 crore as compared to Rs 2,743 crore in the year-ago period. Singh expects H1FY22 to remain muted.

“Asset under management (AUM), the guidance for the whole year, we have pegged it about 6-8 percent. But if we look at the June quarter, definitely the disbursements were on hold for May as well as for the better half of June. But we have just opened up our disbursement as the lockdown has started opening, but it will be a muted second quarter. There will be close to about 8 percent growth which we are looking at for the full year,” he said.

For the full interview, watch the video.

(Edited by : Dipika Ghosh)