Satin Creditcare Network Limited Q2FY22: Disbursements gradually inching towards pre-Covid levels

Satin Creditcare Network Limited

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29th October 2021, India: Satin Creditcare Network Limited (SCNL) (NSE: SATIN, BSE: 539404) has announced its un-audited financial results for the quarter and half year ended 30th September 2021. The financial numbers are based on IndAS.

Financial Performance (On a Consolidated Basis)

Particulars (Rs. crores) Q2 FY22 Q2 FY21
Assets Under Management (AUM) 7,381 7,667
Net Interest Income (NII) 171 184
Pre-Provisioning Operating Profit (PPOP) 53 80
Profit After Tax (PAT) 11 16

Disbursement activities are gradually inching towards the pre-covid levels and we expect this momentum to continue in the coming quarters

Disbursements grew 83% Y-o-Y and 366% Q-o-Q owing to waning pandemic figure as well as sustained and widespread vaccination drive

Standalone disbursements for the quarter stood at Rs. 1,103 crores as compared to Rs. 632 crores in Q2FY21 and Rs. 222 crores in Q1FY21

PAT for Q2FY22 was Rs. 11 crores as compared to a reported loss of Rs. 81 crores in Q1FY22

As on 30th September 2021, our Assigned Portfolio stood at Rs. 811 crores (including Rs. 16 crores of housing portfolio)
Footprints and Outreach


Particulars Sep-21 Sep-20
States & UTs 23 23
Branches 1,279 1,255
No. of Employees 12,910 10,497
No. of Loan Officers 8,313 7,230
No. of Clients 28.9 31.1

Capital Adequacy and Liquidity

  • Our capital adequacy as on 30th September 2021 stood at 22.3%
  • The Company continues to maintain a healthy balance sheet liquidity with ‾Rs. 1400 crores of surplus funds and has undrawn sanctions worth Rs. 323 crores as on 30th September 2021
  • The Rights Issue of Rs. 120 crores launched in August 2020 is fully paid up as on date

Borrowing Profile

  • Total Borrowings stood at Rs. 5,920 crores as on 30th September 2021
  • Debt-to-equity ratio stood at 4.2x
  • 59% of our borrowings are from Banks

Collection Efficiency

Collection efficiency witnessed some dip on account of the second wave of Covid-19 pandemic in Q1FY22. However, collections on ground witnessed significant recovery since July.

Improving Collection Efficiency trend

  • Jul’21 – 86%; excl. Assam 89%
  • Aug’21 – 87%; excl. Assam 89%
  • Sep’21 – 90%; excl. Assam 91%
  • 1-22nd Oct’21 – 96%; excl. Assam 97%

Cumulative collection efficiency for Q2FY22 stood at 88%; excl. Assam at 90%

Significant reduction in number of non-paying clients from 11% during H1FY21 to 4% during H1FY22

For the September quarter Collection Efficiency in top 4 states stood at 93%, which is also showing signs of improvement in the month of October 2021 at 102%.

Asset Quality

On-book Gross Non-Performing Assets stood at 8.71%

We have made adequate on-book provisioning of 8.67% on account of Coivd-19 pandemic


Satin Housing Finance Ltd, has now reached an AUM of Rs. 246 crores including DA of Rs. 16 crores, having presence across 4 states with 2,711 customers

SHFL has 100% retail book comprising of: 78% affordable housing loans and 22% of LAP

The Company has 10 active lenders including NHB refinance

CRAR of 89.3% and gearing of 1.6x. Total equity stands at Rs. 100 crores

The Company has knocked off all accrued losses since inception

Satin Finserv Ltd, our MSME arm reached AUM of Rs. 138 crores, presence across 8 states with 15 branches serving 2,296 customers

Profitable since last years despite difficult business environment

CRAR of 77.9%; total equity stands at Rs. 107 crores

Business Correspondent services under Taraashna Financial Services Limited has reached an AUM of Rs. 682 crores. As of 30th September 2021, the Company operates through 220 branches, has around 3.8 lakh active clients

Scheme of Arrangement

The Board of Directors of  two wholly owned subsidiaries of the Company namely, Taraashna Financial Services Limited and Satin Finserv Limited, at their respective meetings have considered and approved a draft Scheme of Arrangement for Amalgamation of Taraashna Financial Services Limited (“Transferor Company”) with Satin Finserv Limited (“Transferee Company”) and their respective shareholders and creditors (‘Scheme’) under Sections 230 to 232 of the Companies Act, 2013 (“Act”) and other applicable provisions of the Act and rules made thereunder.

Commenting on the performance, Mr. HP Singh, Chairman & Managing Director of Satin Creditcare Network Limited, said

“During the first half of FY22, our resilience and conviction considerably helped us navigate through these tough times. Q1FY22 was a challenging quarter owing to the rising number of Covid-19 cases and the subsequent lockdown to mitigate the spread of the virus. In Q2FY22 we witnessed economic activities gradually returning to normalcy owing to the waning pandemic figure as well as sustained and widespread vaccination drive.

For the period under review, the company adopted the right strategies at the right time offering the right solutions to the people who are in need of these solutions which helped us arrest de-growth. Our disbursements for Q2FY22 stood at Rs. 1,315 crores as compared to Rs. 282 crores in Q1FY22 and Rs. 717 crores Q2FY21. H1FY22 disbursements stood at Rs. 1,597 crores. Gradual pickup in disbursement activities has resulted in our AUM at Rs. 7,381 crores.

Our continuous aim is to maintain a sturdy balance sheet with a comfortable liquidity position. Our balance sheet liquidity stands at ‾Rs. 1,400 crores.

We believe that we are on a strong footing, looking at the buoyancy in the economy. As a responsible organization, we consistently strive to make a positive difference in our stakeholders’ lives by driving financial inclusion. We are guided by our long-standing commitment of reaching the underserved sections of the society. We are propelled by our utmost sincerity, compassion, and long-term vision of offering support where it is most needed and are well poised to achieve growth and conquer the lost ground in the coming quarters.

In line with our long term strategy of diversification, Non-MFI book stood at 9.7% of AUM as on 30th September 2021. We have laid a strong foundation for both SHFL and SFL during last 3 years and have created valuable institutions. We will build and scale these businesses in a calibrated manner to create value for our stakeholders