Manappuram Finance’s standalone net profit fell 11% on year to Rs 392 crore for the quarter ended June due to rise in provisions. On a consolidated basis, net profit for the reporting quarter fell 75% on year to Rs 138.8 crore. The growth in net interest income was muted in the reporting quarter as it was up merely 2% on year.
Asset Quality Deteriorates, Provisions Surge
In the April-June quarter, provisions or bad debts increased to Rs 71.7 crore from Rs 53.3 crore, according to investor presentation. The provision coverage ratio of the bank stood at 13.74% as on June 30.
The asset quality worsened as the gross non-performing asset ratio stood at 3% as on June 30 as against 2.8% a quarter ago and the net non-performing asset ratio stood at 2.6% as on June 30 as against 2.4% a quarter ago.
Gold Loan AUM Rises, Microfinance Contracts Sharply
The standalone assets under management (AUM) was up 15% on year to Rs 35,698 crore. The gold loan AUM inched up 22.4% on year to Rs 27,691 crore as on June 30.
The microfinance segment witnessed a sharp decline in its AUM which fell to Rs 6,705 crore in June from Rs 8,189 crore a quarter ago and Rs 12,310 crore in the corresponding quarter a year ago.
In the AUM mix for FY26, the share of microfinance in the book reduced from 25% in Q1FY25 to 13% in Q1FY26.
The company declared an interim dividend of Rs 0.50 per share, with August 14 set as the record date.
V. P. Nandakumar, managing director of the firm will take over as the chairman of the board effective from August 28 following the retirement of current chairman, Shailesh Jayantilal Mehta.
On Friday, shares of Manappuram Finance closed 1.4% lower at Rs 257.35 on the National Stock Exchange (NSE).