Not all is well yet for Bharat Financial

Flat loan book growth and 6% gross NPA ratio do not offer comfort

After an initial appreciation shown by investors to the June quarter (Q1) results of Bharat Financial Inclusion (BFIL), which took its stock price up over two per cent on Wednesday, sanity started setting, as they realised that a second consecutive quarter of six per cent gross non-performing assets (NPAs) ratio is nothing to cheer about.
 
If any, it indicates that the majority of clean-up undertaken by the financier in the March quarter wasn’t adequate. Therefore, it may be premature to believe that a return of 99.5 per cent collection efficiency or a near halving in provisioning on a sequential