India's Shriram Transport Finance profit surges on higher interest income

BENGALURU, Oct 20 (Reuters) - Shriram Transport Finance Company Ltd (SRTR.NS) on Thursday reported a stronger-than-expected quarterly profit, with more people buying small trucks and as the company's interest income climbed.

Commercial vehicle sales and financing have seen a resurgence following a pandemic-stirred slump, with improving loan repayments also leading to better asset quality for both bank and non-bank lenders.

The commercial vehicle financier reported a profit of 10.67 billion rupees ($128.93 million) for the second quarter ended Sept. 30, compared with a profit of 7.71 billion rupees last year.

Analysts on average had expected a profit of 9.87 billion rupees, according to IBES Refinitiv data.

Interest income in the reported period rose to 51.12 billion rupees from 45.78 billion rupees a year ago, Mumbai-based Shriram Transport said in an exchange filing.

Net non-performing assets of the company as a percentage stood at 3.48% vs 3.52% a quarter ago.

The non-banking finance company is set for an all-stock merger with Shriram City Union Finance, which was announced last December.

The merger received approval from the Indian competition regulator on Aug. 2.

($1 = 82.7580 Indian rupees)

Reporting by Atreya Raghavan in Bengaluru; Editing by Sherry Jacob-Phillips

Our Standards: The Thomson Reuters Trust Principles.