Leading credit rating agency ICRA has reported 17 per cent fall in its operating income for the quarter ended June 30 at Rs 42.5 crore as compared to Rs 51.4 crore in the corresponding quarter of the previous year.
The bank loan segment got adversely impacted due to the steep fall in economic activities and risk aversion following the nationwide lockdown after COVID-19 outbreak.
Though the debt market segment benefitted significantly from an increase in bond issuances as a part of targeted longer-term refinancing operations (TLTRO) programmes, this, however, was restricted to a few select entities.
Besides, the securitisation volumes contracted rather sharply due to the moratorium extended to the borrowers. The other income in the quarter declined by 5.2 per cent on a year-on-year basis due to declining interest rates in general.
Employees benefit expenses declined by 3.5 per cent while other expenses were higher by 12.3 per cent. The increase in other expenses has been mainly on account of the legal cost incurred in relation to certain regulatory and other matters.
The profit before tax for Q1 FY21 was at Rs 13.6 crore, lower by 41.6 per cent as against Rs 23.4 crore in Q1 FY20 and profit after tax was at Rs 9.9 crore, lower by 33 per cent.
( With inputs from ANI )
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