Sundaram Finance reports 45% rise in Q3 net profit

Chennai, Feb 5 (PTI): City-headquartered SundaramFinance has registered a 45 per cent increase in its netprofit for the quarter ended December 31, 2020, the companysaid on Friday.

The net profit of the non-banking finance company stoodat Rs 242 crore compared to Rs 167 crore in thecorresponding period last year.

Disbursement during this period was Rs 4307 crore, a gainof 8.5 per cent against the Rs 3,968 crore for the Q3 endedDecember 31, 2019, a press release from the company said.

The net income for Q3 went up 7 per cent to Rs 1,045 crorefrom Rs 976 crore in the same period last year.

The deposit base stood at Rs 4,112 crore as on December31, 2020 while it was Rs 3,722 crore during the same periodin 2019.

The net NPA (Stage-III) stood at 1.59 per cent.

As per the Supreme Court order on those availingthemselves of moratorium benefit, accounts that were not NPAas of August 31, 2020 have not been classified so far for thenine months ended December 31, 2020, the release said.

The court directive was that the borrowers who have availedmoratorium benefit and have not declared non-performingassets till August 31, 2020 cannot have the NPA so declaredtill further orders, it said.

Commenting on the performance of the company, its managingdirector TT Srinivasaraghavan said compared to the scenarioin the first two quarters of the year, Q3 saw a revival inmost of the business segments of the firm except M & HCVs(medium and heavy commercial vehicles).

''Passenger cars, tractors and construction equipmentsegments did particularly well in Q3,'' he was quoted assaying in the release.

On the outlook, he said with the strong infrastructurepush announced in the Central budget, the company expects thegrowth momentum to pick up in the next few quarters.