Sundaram Finance Q4 Review - Growth Decelerates; Asset Quality Improves: Nirmal Bang

A man holds a two thousand Indian rupee banknote for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg).

Sundaram Finance Q4 Review - Growth Decelerates; Asset Quality Improves: Nirmal Bang

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Nirmal Bang Report

Sundaram Finance Ltd. reported disbursements of Rs 33 billion in Q4 FY21, up 13% YoY and down 24% QoQ.

Assets under management at Rs 308 billion grew by 3% YoY and declined 1% QoQ due to slow disbursements.

Gross stage-III assets/net stage-III assets improved to 1.8%/1% in Q4 FY21 versus 2.5%/1.7% in Q4 FY20 and 2.5%/1.5% in Q3 FY21 – likely due to higher collections and write-offs.

Net interest income at Rs 3.7 billion was up 9% YoY but down 6% QoQ due to low interest yields (likely interest reversals).

Profit after tax was up 60% YoY due to higher other income, ~5% decline in the cost-to-income ratio and low credit costs.

Click on the attachment to read the full report:

Nirmal Bang Sundaram Finance-Q4FY21 Result Update-31 May 2021.pdf

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