JM Financial reported on Monday a 53.36 per cent drop in net profit (after tax, minority interest and share of associates) on a consolidated basis at Rs 20.89 crore for the quarter ended September 2008 as against Rs Rs 44.80 crore in the year-ago period. The fall in profit was the result of a steep decline in fees, commission and brokerage.
During the July-September period, the group’s total income dipped by 36.7 per cent to Rs 121.68 crore as against Rs 191.24 crore during the same period last year. Fees, commission and brokerage fell 49.6 per cent in the second quarter to Rs 7,018.52 crore against Rs 14,614.88 crore in the corresponding quarter last year.
Nimesh Kampani, chairman and managing director, JM Financial, said, “India is experiencing some very difficult times. Global markets have been going through a major turmoil and the repercussions have been felt far and wide. Emerging economies, such as India, have also taken a beating despite strong fundamentals.”
On a standalone basis, JM Financial’s net profit rose 3.8 per cent to Rs 288.91 crore. The provision for standard assets rose to Rs 11.47 crore against Rs 16 lakh last year.