MFIs' net profit more than doubles in Q3 on buoyant interest income

The interest income expanded by 25% YoY to Rs 2,414 crore and sequentially, it rose 9.7% from Rs 2,201 crore in Q2FY23

Emerging from the shock of the pandemic period, the net profit of listed microfinance institutions (MFIs) and MFI subsidiaries of listed firms more than doubled year-on-year (YoY) to Rs 508 crore in the third quarter ended December 2022. The buoyant interest income – 25 per cent YoY and decline in credit costs helped non-banking finance corporation (NBFC) MFIs to report a healthy bottom line.

Sequentially, the pace of growth in net profit was slower compared with YoY growth. It stood at 16.7 per cent over Rs 435 crore posted in the second quarter ended September 2022 (Q2FY23).

The interest income