MUMBAI:
The Board Meeting of Shriram Transport Finance Company Limited (STFC), was held today to consider the unaudited financial results for the Third
quarter ended 31st December, 2020.
Financials (Standalone) :
Third quarter ended 31st December, 2020 :
The Net Interest Income for the Third quarter ended 31st December, 2020 was at Rs. 2,148.22 crores as against Rs. 2,113.75 crores in the same period of the previous year. The profit after tax was Rs. 727.72 crores as against Rs. 879.16 crores recorded in the same period of the previous year. The earning per share (basic) for the third quarter ended 31st December, 2020 stood at Rs. 29.54 as against Rs. 37.76 recorded in the same period of the previous year.
COVID – 19 PROVISION
In view of the disruptions being caused by COVID -19 pandemic (pandemic)and the prolonged lockdown significantly impacting our country’s economy the Company has considered an additional Expected Credit Loss (ECL) provision on Loans of Rs. 224.82 crores and Rs. 1,597.62 crores on account of the pandemic during the quarter and nine month period ended December 31, 2020 respectively.
As at December 31, 2020, additional ECL provision on Loan Assets as management overlay on account of COVID – 19 stood at Rs 2,507.26 crores. The additional ECL provision on account of the pandemic is based on the Company’s historical experience, collection efficiencies post completion of Moratorium period, scheme by Government of India, internal assessment and other emerging forward looking factors on account of the pandemic. However, the actual impact may vary due to prevailing uncertainty caused by the pandemic. The Company’s management is continuously monitoring the situation and the economic factors affecting the operations of the Company.
NPA CLASSIFICATION
Supreme Court, in a public interest litigation (Gajendra Sharma vs. Union of India & Anr). vide an interim order dated September 3, 2020, had directed that accounts which were not declared NPA till August 31, 2020 shall not be declared as NPA till further orders. Gross NPA and Net NPA as of 31st December, 2020 stood at 5.33 % and 3.22 % respectively, as against 8.71% and 6.09% as of 31st December 2019. However such accounts have been classified as stage 3 and provisioned accordingly. Had the Company classified these borrower accounts as NPA after 31 August 2020, the Company’s Gross NPA and Net NPA ratio would have been 7.11 % and 4.31% respectively.
Assets under Management :
Total Assets under Management as on 31st December, 2020 was Rs. 114,932.06 crores as compared to Rs. 108,931.38 crores as on 31st December, 2019.
