Non-public sector lender Sure Financial institution on Friday reported a web lack of Rs 3,787.75 crore for the March quarter of FY21, towards a revenue of Rs 2,629 crore a 12 months in the past, which had arisen out of the writedown of its extra tier-I bonds. Successfully, the financial institution had posted a web lack of Rs 3,668 crore in Q4FY20, which widened in Q4FY21 owing to a 22.5% year-on-year (y-o-y) drop in web curiosity revenue (NII) and a 7.6% rise in provisions.
The financial institution noticed contemporary slippages price Rs 11,800 crore throughout This fall, with Rs 8,000 crore coming from the moratorium guide. Prashant Kumar, managing director & CEO, stated, “We consider the numbers (on asset high quality) have seen a peak, with March outcomes displaying enchancment.” Many of the stress has emerged from sectors which were beneath strain due to Covid, resembling hospitality, journey and business actual property, he added.
Recoveries stood at Rs 1,960 crore and upgrades had been to the tune of Rs 654 crore. Sure Financial institution made technical write-offs of non-performing belongings (NPAs) price Rs 10,300 crore. The gross NPA ratio rose 5 foundation factors (bps) sequentially to fifteen.41% and the web NPA ratio rose 184 bps to five.88%. The financial institution has guided for money recoveries price Rs 5,000 crore in FY22 and it expects slippages to be lower than that.
Sure Financial institution’s provisions rose 7.6% y-o-y to Rs 5,240 crore and its provision protection ratio (PCR) fell to 78.6% from 81.5% on the finish of December. The cumulative provisions by the financial institution, together with that for Covid, stood at Rs 26,558 crore in March 2021, down from Rs 32,010 crore on the finish of December 2020.
The advances guide shrank 5.5% y-o-y to Rs 96,426 crore as on March 31. Retail advances accounted for 30% of the mortgage guide on the finish of March 2021, as towards 28% 1 / 4 in the past. The administration forecast an advances development of over 15% in FY22, led by a 20% development within the retail and SME guide.
Deposits stood at Rs 1.63 lakh crore on the finish of March, up 55% y-o-y and 11% sequentially. The present account financial savings account (CASA) ratio stood at 26.1% in Q4FY21, decrease than 26.6% a 12 months in the past.
The financial institution’s web curiosity margin (NIM), a key measure of profitability, slid 180 foundation factors (bps) sequentially to 1.6%.
The capital adequacy ratio as per Basel III stood at 17.5% as on March 31. The frequent fairness tier-I (CET-I) ratio was at 11.2% on the finish of March.
Sure Financial institution’s shares on the BSE ended flat at Rs 14.55 on Friday. The outcomes had been launched after the shut of commerce.