Piramal Enterprises is likely to see a jump in the delinquencies in the business loan segment in the coming quarters due to stress in the microfinance and business loans, managing director Jairam Sridharan said during the post-Q2 earnings call.
“We expect the stress in the business loan segment to continue and delinquencies levels may go up to 2-2.1 percent range,” Sridharan said.
He further added that after few quarters, the stress in this segment might stabilise once the things started improving.
In July-September quarter, the company had reported an increase in delinquencies in the business loans to 1.6 percent, as compared to 1 percent in year-ago period. It stood at 1.3 percent in first quarter of the current financial year.
Business loans have second highest delinquencies in the reporting quarter after the digital loans. The delinquencies in the digital loans is higher at 3 percent in July-September quarter.
The total assets under management of the company stood at Rs 54,737 crore, which was up 42 percent on a yearly basis. Of the total amount, the share of the business loans is 10 percent in July-September quarter, which has increased from 9 percent in year-ago period.
Under the business loan, the company has around Rs 600-crore portfolio as microfinance loans, Sridharan said.
However, share of digital loan in the total assets under management reduced to 6 percent in Q2FY25, from 9 percent in Q2FY24, as per investor presentation.
The company has reported a sharp increase in its net profit in July-September quarter at Rs 163 crore as compared to Rs 48 crore in the year-ago period.
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