Satin Creditcare Network is doing pretty well in an otherwise listless market. It rose almost 4% to Rs.294.05 and after that slipped to Rs.289.40, up over 2%.
The stock is up after the RBI after the Reserve Bank of India yesterday notified increasing the foreign investment limit in the company to 49% from 24% earlier.
A leading microfinance company with strong presence in North India, the company had faced the full impact of demonetization in Q4FY17 where it posted a 78% decline in total income at Rs.175 crore and slipped in the red with a net loss at Rs.43 crore.
All eyes are now on the company as to how it will fare with the loan waiver announced in Punjab. The company has clarified that its exposure to Punjab is 12% of the book and currently have 20,000 zero-collection clients out of the total of 3.5 lakh in Punjab. The company does not expected stress on its books due to this as its collection efficiency in UP, despite the loan waiver remained at 95-99%.