Private sector NBFC Future Capital Holdings today reported nearly three-fold jump in net profit to Rs 28.91 crore in the third quarter ended in December on higher net interest and fee income.
Net profit of the company stood at Rs 10 crore in the same period last year.
"The sound growth in net profit is due to higher net interest income (NII), along with rise in fee income," said Vice Chairman and Managing Director of Future Capital, V Vaidyanathan.
The core income, which is net interest income (NII) plus fees, grew from Rs 108.6 crore in first nine months of FY11 to Rs 255.5 crore.
Total income rose 112% to Rs 181.12 crore in the third quarter, as compared to Rs 85.43 crore reported in the same period last year.
Net interest margin for the NBFC stood at 5.2% for the first nine months.
"We are likely to maintain our margin at the current level during this fiscal," Vaidyanathan said.
In the meantime, its advances grew by around 80% to Rs 4,257 crore during this period.
"Retail portfolio has increased to 45% of our total loan book, from 18% an year earlier and this retail focus will continue in future," Vaidyanathan said, adding that the company reported increased NII on the back of increased proportion of retail portfolio.
The asset quality of the NBFC also improved in the last quarter. While gross NPA was at 0.04% as compared to 0.27% a year earlier, net NPA was zero for the company.
"We are able to maintain the asset quality mainly because of underwriting quality, and also because 90% of our retail loan portfolio is mortgage backed," he said.
Referring to the capital raising plans, Vaidyanathan said the company has a headroom of raising around Rs 450 crore of subordinate debt through tier-II bonds and it may raise some capital by the same route in the near future.
