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Bharat Financial moves north on completion of securitization transaction

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Capital Market
Last Updated : Sep 16 2016 | 10:13 AM IST

Bharat Financial Inclusion rose 2.11% to Rs 778.70 at 9:56 IST on BSE after the company said it has completed a securitization transaction of Rs 108 crore.

The announcement was made after market hours yesterday, 15 September 2016.

Meanwhile, the S&P BSE Sensex was up 299.75 points or 1.05% at 28,712.64.

On BSE, so far 27,000 shares were traded in the counter as against average daily volume of 2.21 lakh shares in the past one quarter. The stock hit a high of Rs 782.70 and a low of Rs 775 so far during the day. The stock had hit a 52-week high of Rs 938.75 on 29 July 2016. The stock had hit a 52-week low of Rs 369.45 on 18 September 2015. The stock had underperformed the market over the past one month till 15 September 2016, sliding 6.04% compared with 0.93% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 13.1% as against Sensex's 6.31% rise.

The mid-cap company has equity capital of Rs 127.77 crore. Face value per share is Rs 10.

With the completion of the latest securitization transaction, the company has completed three securitization transactions aggregating to Rs 852.44 crore in the current financial year (FY 2017). The entire pool qualifies for priority sector treatment as per the Reserve Bank of India's priority sector lending guidelines. The pool has been rated AA (SO) by a leading rating agency, signifying a 'high degree of safety regarding timely servicing of financial obligations'. Such instruments carry very low credit risk, the company said.

Bharat Financial Inclusion's net profit surged 285.7% to Rs 235.91 crore on 46.5% increase in total income to Rs 414.12 crore in Q1 June 2016 over Q1 June 2015.

Bharat Financial Inclusion is among the largest microfinance companies in India.

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First Published: Sep 16 2016 | 9:49 AM IST

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