IIFL Finance has reported a fall in consolidated net profit by 6 per cent to Rs 431 crore for the three months ended March compared with Rs 458 crore during the corresponding period of the previous year. The reason for the drop was due to the fact that the RBI, through its directions dated March 4, asked the company to discontinue gold loan operations which were in violation of various regulatory requirements including the purity certification of gold.
Notwithstanding these, its consolidated total income for January-March 2024 rose to Rs 2,922 crore from Rs 2,276 crore in the year-ago period. Interest income from its diversified loan and mortgage portfolio saw a sharp rise to Rs 2,720 crore from Rs 2,058 crore in the same quarter a year ago.
While gross non-performing assets rose significantly to 2.3 per cent from 1.8 per cent in March 2023, net NPAs rose to 1.2 per cent from 1.1 per cent during the same period.
IIFL Finance has maintained a strong capital adequacy ratio with a CRAR of 19.7 per cent as on March 31, 2024. This is comfortably higher than the minimum regulatory requirement of 15 per cent.
This thus underlines the company's resilience in navigating the challenges while putting in place gestures to grow core operations in other lending segments.
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