IIFL Finance profit rises 43% to Rs 473 cr in Q1 on higher loan growth

IIFL Finance on Thursday reported a 43 per cent growth in net income to Rs 473 crore for the June 2023 quarter on higher loan growth led by gold and home finance.

While gold loans grew 29 per cent, home finance jumped 23 per cent, and microfinance loans soared 63 per cent, and loans against property grew 54 per cent, pushing the overall loan sales by 31 per cent to Rs 68,178 crore, of which off-book assets stood at Rs 26,663 crore, up 45 per cent, the company said in a statement.

Its income rose 21 per cent year-on-year to Rs 1,420 crore, the company said.

 

Reflecting the industry trend, the company also saw its asset quality improving, with gross NPAs falling to 1.8 per cent from 2.6 per cent for the reporting quarter and net NPAs improving to 1.1 per cent from 1.5 per cent. Its provision coverage for bad loans stood at 159 per cent.

The company's average borrowing cost increased by 44 bps to 9.1 per cent.

As much as 96 per cent of loans are retail and 67 per cent of them (excluding gold loans) are PSL-compliant. The assigned loan book stood at Rs 17,700 crore, securitised assets was Rs 808 crore and the co-lending book at Rs 8,963 crore.

Retail home loans grew 23 per cent year-on-year to Rs 22,838 crore, which are primarily in the affordable and non-metro loans, while the second biggest book that is gold loans book grew to Rs 22,142 crore, showing a growth of 29 per cent and microfinance book jumped 63 per cent to Rs 10,255 crore across 24.1 lakh customers.

Loan against property grew 19 per cent to Rs 6,836 crore, and construction and real estate book at Rs 2,732 crore.

The company had cash and cash equivalents and committed credit lines from banks and institutions worth Rs 6,510 crore, and during the quarter, it raised Rs 4,504 crore through term loans, bonds and refinance. It also raised Rs 4,155 core through direct assignment.