JM Financial on Saturday reported a 15 percent rise in its consolidated net profit to Rs 181 crore in the third quarter ended December. The financial services provider had posted a net profit of Rs 158 crore in the year-ago quarter.
However, gross revenues of the company fell by 1.6 percent to Rs 891 crore during October-December period of 2020-21 from Rs 905 crore by same period of 2019-20. "Our total loan book (does not include episodic financing book) stood at Rs 10,407 crore as of December 31, 2020, compared to Rs 12,662 crore as of December 31, 2019.
"During the quarter, we offered resolution plan to customers pursuant to RBI resolution framework for COVID-19 related stress (August 2020). The aggregate loan book of these accounts stood at Rs 62 crore (0.59 percent of loan book as of December 31, 2020," JM Financial said in a release. Company's gross non-performing assets (NPAs) and net NPAs stood at 1.79 percent and 1.16 percent respectively at end-December compared to 1.56 percent and 1.35 percent by December 2019.
"Proforma gross NPA and net NPA as of December 31, 2020, without considering effect of the interim order of Supreme Court of not classifying loans as NPA after August 31, 2020 would have been 3.57 percent and 2.04 percent respectively. "We have made additional gross provisions of Rs 185 crore on account of the uncertainties around COVID-19 for the nine months ended December 31, 2020, thereby taking the total provisions to Rs 360 crore on account of the pandemic," it said.
Vishal Kampani, Managing Director, JM Financial Group, said the economy has rebounded quite strongly from the pandemic as compared to the first two quarters of this financial year. "The economy is showing strong signs of recovery, albeit some part of the recovery can be attributed to pent-up demand. It will be very interesting to watch this trend of recovery in the current and next few quarters," he said.
In company's investment banking, wealth management and securities business (IWS), strong traction in institutional and non-institutional equities businesses is being witnessed, the company said. Likewise, mortgage lending business, the sales data for the real estate sector over the last few months has been extremely encouraging and "we expect our escrow cash flows to remain strong," it said further.
"On the back of recovery of economy post COVID-19 and opening up of NCLTs, our distressed credit business also witnessed few resolutions, adding to the overall profitability of the group for the quarter," it said.