Second largest micro-lender Bharat Financial Inclusion today reported an 18 per cent fall in net profit for the three months to September at Rs 119 crore despite a healthy growth in revenue.
The company which last week announced merger with private sector lender Indusind Bank in an all stock deal had reported Rs 146 crore profit in the year-ago period.
It did not offer reason for the plunge in net income for the period. This comes despite an improvement in its cost- to-income ratio which has fallen to 48.6 per cent from 51.8 per cent in Q1. It has set a cost-to-income ratio target of 40 per cent by FY19.
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For the reporting quarter, its revenue rose 12 per cent to Rs 505 crore from Rs 450 crore a year ago, while its expenses rose a similar percentage to Rs 176 crore from Rs 158 crore, the company said in a statement.
Net interest income rose 13 per cent to Rs 261 crore. For the first six months of the current financial year, its net income plunged 78 per cent to Rs 82 crore from Rs 382 crore, the company said.
It said cumulative collection efficiency rose to 99.8 per cent, while its loans disbursals rose to Rs 12,582 crore between January and October 15, 2017, taking its gross loan portfolio to Rs 10,697 crore.
For the reporting quarter, its disbursements grew 22 per cent to Rs 4,288 crore. It has set a loan book of Rs 19,500 crore for FY18, managing director and chief executive MR Rao said.
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