Business News | Fintech Capital Trust Struggles to Beat Covid-19 Blues
Get latest articles and stories on Business at LatestLY. Non-banking finance company Capital Trust has reported a loss of Rs 14 crore in Q1 FY22 from a profit after tax of Rs 2 crore in the same period of last fiscal due to second wave of Covid-19 impacting semi-urban and rural markets.
New Delhi [India], Aug 17 (ANI): Non-banking finance company Capital Trust has reported a loss of Rs 14 crore in Q1 FY22 from a profit after tax of Rs 2 crore in the same period of last fiscal due to second wave of Covid-19 impacting semi-urban and rural markets.
Assets under management plunged to Rs 337 crore from Rs 467 crore while net interest income dipped 29 per cent to Rs 10 crore from 14 crore in the same period.
However, disbursements went up from nil in Q1 FY21 to Rs 11 crore in Q1 FY22.
Collection efficiency of post-lockdown 1.0 portfolio (that is backed by in-house developed automated credit engine) initially declined during the month of April and May, only to rebound sharply from the month of June and which gained further momentum to reach around 95 per cent in July.
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"The company remained cautious in disbursement of loans to new customers and followed stringent underwriting processes," said Managing Director Yogen Khosla.
"Despite the disruptions, our rural-doorstep fintech business model helped us to navigate successfully through the challenges," he said.
The company's net worth as on June 30 was at Rs 117 crore. "It has adequate liquidity and a healthy balance sheet position which makes it well-positioned and agile to achieve growth over the medium to long term, while the demand remains strong," said Khosla.
Capital Trust now has a network of 244 branches spread across 73 districts covering 10 states.
Merging best practices of fintech and traditional financing, the company focuses on financial inclusion of the underserved in deep interiors of rural India using digital processes and state-of-the-art technology. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)