Aditya Birla Capital on Wednesday posted a 42% year-on-year increase in its consolidated profit to Rs 429 crore for the quarter ended June, led by an increase in revenues from the lending and insurance verticals. The company reported a 26% Y-o-Y growth in consolidated revenue to Rs 5,590 crore.

Overall lending operations rose 22% to Rs 69,887 crore, with the NBFC loan book growing 29% to Rs 57,839 crore and the housing finance loan book by 7% to Rs 12,049 crore. Lending to retail, SME and high net worth individuals, a part of the NBFC business, constitutes 69% of the overall lending business, the company said in a press release.

The net interest margin (NIM) of the NBFC business was at 6.47%, higher by 33 bps, led by growth in retail and SME segments and lower cost of borrowing. Gross stage-3 assets stood at 3.2%, down 40 bps, while the provision coverage on the stage-3 assets improved to 48%, compared with 42.7% in the previous year.

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In the housing finance business, the overall loan book improved 7% to Rs 12,049 crore, with the affordable housing book growing at Rs 4,745 crore, leading to increase in affordable mix to 39%. The NIM of housing finance business improved to 4.59% as on June 30, higher by 59 bps. Gross stage-3 assets stood at 2.16%, higher by 14 bps sequentially with provision coverage at 33.1% and net stage-3 assets at 1.44%, higher by 11 bps sequentially.

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The company’s mutual fund quarterly average assets under management (AUM) stood at Rs 2.81 trillion with monthly systematic inflows at Rs 898 crore during the quarter with 3.2 million accounts being registered. The company has continued focus on building retail customer franchise with a total of 8.1 million folios. The asset management business posted flat operating profit as its other income was impacted by trading losses.

The company’s total gross written premium of life insurance and health insurance grew 53% to Rs 3,250 crore. The individual first year premium (FYP) in the life insurance business grew 26% to Rs 409 crore while renewal premium grew 18% to Rs 1,285 crore.