Leading NBFC Sundaram Finance has announced a rise of 22 per cent in its first quarter net profit at Rs. 115.99 crore against Rs. 94.81cr recorded in the same period last year.
Loan disbursements for the quarter ended June 30, 2013 went up 15 per cent to Rs. 2,799 crore from Rs. 2,440 crore in the year-ago period.
The company has started adopting (ahead of regulatory requirement) stricter provisioning norms from last year, whereby instalments that are overdue for 120 days and above are provisioned as against the regulatory requirement of 180 days and above.
Despite the stricter asset classification norms, the company continued to maintain best in class asset quality with the gross NPA at 1.53 per cent and the net NPA at 0.92 per cent.
The deposit base crossed the Rs. 1,500 crore mark during the first quarter and stood at Rs. 1,540 crore as on June 30, 2013.
According to TT Srinivasaraghavan, Managing Director “The overall outlook remains uncertain. While our focus on the medium and heavy commercial vehicles segment continues, we will look to expand our presence in newer segments such as light commercial vehicles and tractors. As always, the emphasis is on growth with quality and profitability.”
