IIFL Finance net profit rises 29% to Rs 545 crore in December quarter

Non-bank lender IIFL Finance Wednesday reported a 29 per cent growth in net profit to Rs 545 crore for the December quarter on higher loan sales and resultant interest income, cushioning the impact of higher regulatory charges.

Overall loan growth jumped 34 per cent to Rs 77,444 crore, led by its key products like gold and home loans, which grew 35 per cent and 25 per cent to Rs 24,692 crore and Rs 25,519 crore, respectively.

Microfinance grew higher at 54 per cent to Rs 12,090 crore, digital loans soared 96 per cent to Rs 3,905 crore, and loans against property jumped 27 per cent to Rs 7,862 crore, the company said in a statement. Construction and real estate books stood at Rs 2,889 crore.

Its total income grew 28 per cent to Rs 1,687.5 crore, the company added.

The asset quality improved overall, with the gross non-performing assets ratio declining to 1.7 in the reporting period from 2.1 per cent and the net non-performing assets ratio declining to 0.9 from 1.1, said Nirmal Jain, the founder of the company.

Its group chief financial officer Kapish Jain said in spite of healthy growth in our asset under management of 23 per cent since fiscal 2019, we continue to strengthen our capital position with net gearing at a consolidated level touching a five-year low of 3.3x as they meet funding requirements from healthy internal accruals, giving it better margins and asset light business strategy.

He said the average borrowing cost for the quarter increased 28 bps to 9.07 per cent, partly due to the higher regulatory charges.

Jain said as much as 96 per cent of their loans are retail.

The assigned loan book is currently at Rs 18,648 crore. Besides, there are securitised assets of Rs 338 crore, and the co-lending book is at Rs 11,586 crore.

The company had cash and cash equivalents and committed credit lines from banks and institutions worth Rs 10,081 crore. During the quarter, it raised Rs 5,046 crore through term loans, bonds and refinance, and an additional Rs 3,976 crore was raised through direct assignment of loans.

The company has 4,681 branches as of quarter end against 4,596 last quarter.