Bharat Financial

SKS Microfinance announced a PAT of Rs. 5 crore in Q1FY14, its third consecutive quarter of profit post its turnaround in Q3-FY13. It showed a four-fold increase in operating profit at Rs. 16 crore v/s Rs. 4 crore (QoQ). Net interest income increased by 26% at Rs. 63 crore (QoQ). This was thanks to the 51% rise in loan disbursements at Rs.830 crore in current Q1. Consequently, the non-Andhra Pradesh portfolio grew by 63% (YoY) to Rs. 2,003 crore in Q1 and the average portfolio outstanding increased by 14% (QoQ). Loan disbursement in Q1 stood at Rs.830 crore, which is 17% of FY14 guidance of Rs.4,500–4,800 crore. Gold loan comprises 3% of gross non-AP loan portfolio.

Increase in provisioning for standard Non-AP portfolio from 0.25% to 1% on the basis of RBI guidelines for NBFCMFIs, resulted in additional provisioning of Rs. 12 crore for Q1FY14. The entire provisioning for Q1FY14 relates fully to Standard Asset Provisioning and it has adopted the new Standard Asset Provisioning norms by RBI wef. 1st April 2013 itself. Networth was at Rs.395 crore and CAR was at 30.2% as of 30th June, 2013; CAR without RBI dispensation on AP provisioning is 21.6%. In terms of bringing down costs, it has reduced its branches from 2403 at end of Q3Fy11 to 1255 at end of current Q1. Similarly, employee headcount has been reduced from 25,735 to 9,959 and personnel cost has come down during this period by 53%. The company has guided a PAT of Rs.55-60 crore for Fy14.