IIFL Finance Q3 profit up 15% at Rs 310 cr backed by home, gold loan biz

IIFL Finance on Friday announced a 15% increase in net profit to Rs 310 crore for the December quarter 2021-22, supported by growth in mortgage and gold businesses.

The company had recorded a net profit of Rs 269 crore in the period a year ago.

Total revenue during the reporting period increased to Rs 1,071 crore from Rs 919 crore in the prior year quarter.

Assets under management for IIFL loans were up 11% year-on-year, driven by continued growth in real estate lending and gold lending business, the company said in a statement.

The non-banking finance company said it has liquidity comfort at an all-time high of Rs 9,145 crore, which is enough to not only meet all short-term liabilities but also fund the momentum. of growth.

“Our annualized ROE (return on equity) remained above 20% and ROA (return on assets) above 2.5%. With the continued expansion, operating costs increased 9% from a quarter to quarter,” he said.

As of December 31, 2021, the company’s AUM stood at Rs 46,780 crore, with the home loans segment constituting 35%, gold loans 31%, corporate loans 15% and microfinance loans 11% of the total AUM.

The company said 94% of its loans are commercial in nature and 67% of those loans (excluding gold) are PSL (Priority Sector Loan) compliant.

The gross NPA (non-performing assets) amounted to 2.8% and the net NPA to 1.5% as of December 31, 2021.

IIFL Finance also announced that it has appointed former SBI Chairman Arun Kumar Purwar as Chairman effective April 1, 2022.

This appointment was approved by the Board at a meeting on January 27, 2022.

“We continue to invest in expanding capabilities through digital initiatives, partnerships, new branches and growth channels in core businesses. Our liquidity position has improved significantly and cash and l our balance sheet equivalent are at an all-time high.

“Loan disbursements through new digital initiatives had great traction last quarter and we expect further acceleration in the coming year,” said Nirmal Jain, President of IIFL Finance.

IIFL Finance shares closed up 1.63% at Rs 318.50 on BSE.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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