IIFL Finance net drops 81.8% due to Covid-19 related provisions

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July 23, 2020 1:30 AM

The income rose 5.6% year on year (yoy) to Rs 1276 crore in the June quarter. The net interest income on loan book increased 9% yoy to Rs 472.7 crore.

The loans under moratorium fell from 60% at the end of May to 31% by June-end.The loans under moratorium fell from 60% at the end of May to 31% by June-end.

Non-banking lender IIFL Finance posted 81.8% year-on-year (y-o-y) decline in consolidated net profit in the June quarter to Rs 31.83 crore due to exceptional items, including Covid-19 provisioning. “The exceptional items comprise Covid-19 provision of Rs 194 crore and Rs 70 crore mark-to-market (MTM) loss on forex borrowings and hedge,” the company said. The loans under moratorium fell from 60% at the end of May to 31% by June-end.

IIFL Finance chairman Nirmal Jain said, “The proportion of customers under moratorium is falling. Against this backdrop, we look at steady improvement in business environment for NBFCs.” “Our business plan this year is to focus on productivity and asset quality to fortify the foundation for future growth,” he added.

The income rose 5.6% year on year (yoy) to Rs 1276 crore in the June quarter. The net interest income on loan book increased 9% yoy to Rs 472.7 crore.

IIFL Finance had loan assets under management (AUM) of Rs 38,335 crore as on June 30. The home loans segment constituted 33%, business loans 21%, gold 25% and microfinance 8% of the total AUM.

The company was able to raise Rs 1,005 crore during the quarter through term loans and refinance from banks. Loans worth Rs 877 crore were securitised during the quarter. The company had Rs 3,745 crore as cash and cash equivalents and committed credit lines from banks as on June 30. According to details given in the investor presentation, the company can meet debt obligations comfortably till February 2021.

The gross non-performing assets (GNPAs) stood at 1.95% and net NPAs stood at 0.86% as on June 30. Its capital adequacy ratio stood at 19.3%, against statutory requirement of 15%.

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