Leading brokerage JM Financial on Thursday reported Rs 174.43 crore in net profit for the three months to September, up 25.44 per cent from Rs 139.06 crore a year ago.
Total income of the diversified group, which is into broking, investment banking, asset reconstruction, and housing and retail loans, among others, rose 20.67 per cent to Rs 969.49 crore from Rs 803.40 crore.
For the half year ended September, the company booked an income of Rs 1,962.04 crore, up 31.28 per cent from Rs 1,494.51 crore in the year-ago period. Net income came in at Rs 377.57 crore, up 62.28 per cent from Rs 232.67 crore in H1 FY21.
Consolidated loan book continued to decline and stood at Rs 11,072 crore during the reporting quarter, compared to Rs 11,386 crore a year ago. Asset quality worsened both at the gross and net levels, with gross NPAs jumping to 2.32 per cent from 1.69 per cent and net bad loans ratio rising to 1.38 per cent from 1.13 per cent in September 2020.
Its restructured loan book, under the resolution framework for COVID-19 announced by the RBI, stood at 0.87 per cent, up from 0.62 per cent in June 2021. Special mention accounts (SMA-2) numbers decreased from 5.99 per cent in June 2021 to 5.09 per cent of the total portfolio in September 2021. During this period, the loan book has decreased from Rs 7,166 crore to Rs 6,595 crore.
The company has made an additional gross provision of Rs 76 crore towards the pandemic for the reporting quarter, thereby taking the total provisions, net of reversals, to Rs 559 crore on account of the pandemic. Vishal Kampani, the non-executive vice-chairman of the firm, said the Q2 numbers look encouraging and reflect sustainable growth.As economic activities gradually come back to normal, the company is well positioned to drive value for its stakeholder across business verticals, he added. Total mortgage lending book, comprising loan books of JM Financial Credit Solutions and JM Financial Home Loans, stood at Rs 7,102 crore.