Non-public sector lender Sure Financial institution reported a ₹600 crore web loss for the July-September quarter of the present monetary 12 months as in contrast ₹964 crore revenue throughout the identical interval of the earlier monetary 12 months on account of one-time adjustment of deferred tax property, at the same time as dangerous loans mounted.
Excluding the one-time DTA impression, the revenue would have been ₹109 crore, the financial institution stated.
Gross slippages to dangerous loans stayed elevated, at ₹5,950 crore through the quarter and the financial institution stated the quantity had fallen in comparison sequentially. Slippages from the ‘BB’ and beneath e book was ₹3,730 crore and ₹2,220 crore from exterior the ‘BB’ and beneath e book.
Consequently, gross non-performing property shot as much as ₹17,134 crore as on finish September as in comparison with ₹3,866 crore a 12 months in the past. Gross NPA as on finish June was ₹12,092 crore.
The gross NPA ratio, as on September 30 was 7.39% as in comparison with 1.6% a 12 months in the past and 5.01% on the finish of April-June quarter.
Resulting from excessive slippages, provisions went as much as ₹1,336 crore through the second quarter as in comparison with ₹939 crore.
The associated fee to revenue ratio additionally shot as much as 53.4% in Q2 from 39.2% a 12 months in the past.
Internet curiosity revenue for the quarter was ₹2,190 crore which is 4% decrease sequentially and 9.6% year-on-year. The financial institution has attributed this fall to a 7% sequential decline in property and impression of ₹200 crore on account of slippages.
An asset stops earnings curiosity when it turns into non-performing, impacting curiosity revenue. Internet curiosity margin additionally fell each sequentially and on year-on-year foundation, to 2.7% from 2.8% within the earlier quarter and three.3% within the 12 months in the past interval. The non-interest revenue fell by a whopping 36% year-on-year to ₹945 crore.
The advances e book of the financial institution contracted 6.3% year-on-year and 5% sequentially to ₹2,24,505 crore. Deposit e book additionally contracted 6% on 12 months and seven.3% sequentially to ₹2,09,497 crore. Sure Financial institution shares ended 5.5% decrease to shut the day at ₹66.60.