IIFL Finance net profit jumps 32% to Rs 526 crore

IIFL Finance net profit jumps 32% to Rs 526 crore

Non-banking lender IIFL Finance on October 18 reported a 32 per cent on-year growth in net income at Rs 526 crore for the quarter ended September 30, driven by higher interest income. Total income grew 33 per cent to Rs 1,599.3 crore, the company said, adding its asset quality improved with gross Non-Performing Assets (NPAs) falling to 1.8 per cent from 2.4 per cent and net NPAs improving to 1 per cent from 1.2 per cent.

Gold loans and home loans increased by 33 per cent and 22 per cent year-on-year respectively, the IIFL group company said in a statement. The company's microfinance book grew by 67 per cent and digital loans and loan against property jumped 77 per cent and 21 per cent, respectively, it added.

Accordingly, the company's overall loan portfolio rose 34 per cent to Rs 73,066 crore. Kapish Jain, the group chief financial officer said average borrowing costs for the quarter increased 40 bps to 9 per cent.

The retail-focused company has as much as 96 per cent of its book in the retail segment and 67 per cent of the book is Priority Sector Lending (PSL)-compliant. This is excluding gold loans which are not classified as PSL loans, Jain said. The company had 4,596 branches as of September quarter-end.