IIFL Finance Q3 Results: Lower Cost Of Funds, Easing Liquidity Conditions Aid Profit Growth
Cost of funds declined by 10 basis points to 9.3 percent in the quarter ended December, says CEO Bali.
IIFL Finance Ltd.’s profit growth in the third quarter was aided by lower cost of funds and a significant improvement in its ability to raise capital, according to its Chief Executive Officer Sumit Bali.
“We raised around Rs 2,700 crore in bank loans and non-convertible debentures versus Rs 1,700 crore in the second quarter—this is a significant improvement,” Bali told BloombergQuint. “Also, the cost of funds has come down by 10 basis points to 9.3 percent this quarter.”
IIFL Finance said the liquidity situation will sustain as state-owned banks require mandatory priority sector exposure compliance in the quarter ending March. The company, with an exposure of 44 percent in the priority sector lending, makes it an “attractive” candidate for such banks, Bali said.
IIFL Finance: Q3 Results (YoY)
- Profit after tax rose 78 percent to Rs 192.5 crore.
- Assets under management rose 11 percent.
- The loan book grew 2 percent.
- Gross NPAs at 2.3 percent versus 2.5 percent (QoQ)
- Net NPAs at 1 percent versus 1.5 percent (QoQ)
Shares of the Thane-based firm declined 2.7 percent intraday to Rs 165.05 apiece compared with a 0.37 percent gain in the Nifty Index.