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SIDBI Q3FY21 net up 9% to Rs 630 cr on better income, strong credit growth

Asset quality profile improves as bad loans dip; provision coverage ratio rises to 96 per cent

SIDBI | Q3 results

Abhijit Lele  |  Mumbai 

It had posted net profit of Rs 578 crore in quarter ended December 2019 (Q3FY20)

The Small Industries Development Bank of India’s (SIDBI's) net profit rose by nine per cent to Rs 630 crore in the third quarter ended December 2020 (Q3FY21), on improved interest income and better non-interest income.

It had posted net profit of Rs 578 crore in quarter ended December 2019 (Q3FY20).

The Net Interest Income (NII) for reporting quarter rose by three per cent to Rs 840 crore in Q3FY21 from Rs 816 crore in Q3FY20. The non-interest income increased by 16.7 per cent to Rs 154 crore in Q3FY21 from Rs 132 crore in Q3FY20, bank said in a statement.

V Satya Venkata Rao, Deputy Managing Director, said the credit growth to the MSME sector has been strong despite the impact of the COVID-19 pandemic. This has helped to post encouraging financial performance with a boost to loan book.

The lender's asset quality profile also improved with a dip in bad loans and provisions. The insitution managed to keep asset quality under check. The focus will be on sustaining the growth and scalability, Rao said.

Its gross Non-Performing Assets (GNPA) decreased to Rs 669 crore (0.47 per cent) in December 2020 from Rs 1,550 crore (0.97 per cent) in December 2019. The Net NPA also declined to Rs 114 crore (0.08 per cent) from Rs 884 crore (0.56 per cent) in December 2019. The provision coverage ratio (PCR) rose to 96 per cent from 72 per cent.

Its networth of the bank increased to Rs 20,694 crore from Rs. 16,941 crore. The return on Capital Employed increased to 10.45 per cent from 9.08 per cent.

Its Capital Adequacy Ratio (CAR) stood at 29.04 per cent in December 2020, up from 24.79 per cent a year ago.

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First Published: Mon, February 15 2021. 18:47 IST