Latest news with #SatinCreditcareNetworkLtd
Business Standard
20-05-2025
- Business
- Business Standard
Satin Creditcare Posts a Healthy Profit After Tax (Pat) Of Rs217 Crore for Q4 Of FY25
VMPL Mumbai (Maharashtra) [India], May 20: Satin Creditcare Network Ltd. (SCNL), a leading NBFC-MFI committed to rural financial inclusion, has reported a strong financial performance for Q4 of FY 2025. Despite ongoing challenges in the microfinance sector, the company's resilience and strategic prudence have enabled it to maintain stability and growth. On a standalone basis, SCNL recorded an Assets Under Management (AUM) of Rs11,316 crore, reflecting a 6.8% year-on-year growth. The company continued its streak of profitability for the 15th consecutive quarter, posting a Profit After Tax (PAT) of Rs217 crore and a Pre-Provision Operating Profit (PPOP) of Rs736 crore. Return metrics remained robust, with Return on Assets (RoA) at 2.07% and Return on Equity (RoE) at 7.86%, backed by a healthy net worth of Rs2,843 crore. Despite prevailing headwinds, SCNL demonstrated significant improvement in asset quality. The company successfully lowered its PAR 1 by 192 basis points to 4.9% and maintained Gross Non-Performing Assets (GNPA) at 3.70%. Collection efficiency for the 0 days past due portfolio remained exceptional, standing at ~99.8% in March 2025, while credit costs were effectively managed at 4.6%, staying within the guided range. On a consolidated basis, SCNL reported an AUM of Rs12,784 crore and a PAT of Rs186 crore, with a Net Interest Margin (NIM) of 12.61%, underscoring its disciplined pricing and efficient capital deployment. Mr. H P Singh, CMDexpressed happiness at the company's performance, "Our FY25 results underscore the strength of our business model and our unwavering commitment to financial inclusion. Despite challenges in the sector, our prudent risk management, diversified funding base, and customer-centric approach have enabled us to navigate volatility while maintaining stability and growth. As we move forward, we remain focused on innovation, sustainability, and expanding financial access to underserved communities." SCNL made significant strides in strategic initiatives during the year, including the successful closure of a USD 100 million syndicated social loan via External Commercial Borrowing (ECB) and further diversification of its lender base. Additionally, the company received a prestigious "SQS2" Sustainability Quality Score from Moody's Ratings for its Social Financing Framework. The company's subsidiaries also posted strong growth. Satin Housing Finance Ltd. achieved a 22% YoY AUM increase to Rs920 crore, while Satin Finserv Ltd. scaled its MSME book to Rs516 crore, marking an impressive 58% jump. With a steadfast commitment to governance, technology-driven operations, and a diversified product portfolio, Satin Creditcare continues to solidify its position as one of India's most stable and future-ready financial inclusion leaders. About Satin Creditcare Network Limited: Satin Creditcare Network Limited (SCNL or Satin) is aleading microfinance institution (MFI) in the country with presence in 29 states & union territories and over 90,000 villages. The Company's mission is to be a leading micro financial institution by providing a comprehensive range of products and services for the financially under-served community. The Company aims to lead in gender empowerment by leveraging on technology and innovation that forge sustainable strategic partnerships. The Company also offers a bouquet of financial products in the Non-MFI segment, comprising of loans to MSMEs and affordable housing loans. In April 2017, SCNL incorporated a wholly-owned housing finance subsidiary Satin Housing Finance Limited (SHFL) for providing loans in the affordable and micro-housing segment. In January 2019, SCNL received separate NBFC license to commence MSME business through Satin Finserv Limited (SFL). In August 2024, SCNL incorporated a subsidiary for software services, Satin Technologies Limited (STL) dedicated to developing innovative, world-class technology solutions by leveraging cutting-edge technologies. As on 31st March 2025, Satin group had 1,568 branches and a headcount of 16,705 across 29 states and union territories, serving 33.6 lakh clients.
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Business Standard
07-05-2025
- Business
- Business Standard
Satin Creditcare Q4: Profit falls 67% on higher credit costs, weak AUM
Microfinance lender Satin Creditcare Network Ltd's standalone net profit declined by 67.2 per cent year-on-year (Y-o-Y) to Rs 41 crore in the fourth quarter ended March 2025 (Q4FY25) due to a rise in credit costs and muted loan growth. For the financial year ended March 2025, Satin's net profit fell by 48.8 per cent to Rs 217 crore, from Rs 423 crore in FY24. Its stock closed 2.66 per cent lower at Rs 167.60 per share on the BSE. Revenues for the reporting quarter (Q4FY25) declined by 5.4 per cent Y-o-Y to Rs 562 crore, the company said in a statement. Net interest margins fell from 14.2 per cent in Q4FY24 to 11.8 per cent. Impairment costs of financial instruments rose from Rs 64.16 crore in Q4FY24 to Rs 105.19 crore in Q4FY25. H P Singh, chairman and managing director, Satin Creditcare, told Business Standard that the decline in profit was attributable to a significant rise in credit costs and muted growth in assets under management (AUM). The company's AUM grew by 6.8 per cent Y-o-Y to Rs 11,316 crore as of the end of March 2025. At present, the company is not providing growth guidance. It will assess how the first quarter ending June 2025—which coincides with the summer season and potential heatwave risks—unfolds. Growth in FY26 is expected to be better than FY25, Singh added.
