Bharat Financial Inclusion Q2 profit dips 18% to Rs119 crore
Mumbai: Second largest micro-lender Bharat Financial Inclusion Ltd on Saturday reported an 18% fall in net profit for the three months to September at Rs119 crore despite a healthy growth in revenue.
The company which last week announced merger with private sector lender Indusind Bank in an all stock deal had reported Rs146 crore profit in the year-ago period. It did not offer reason for the plunge in net income for the period. This comes despite an improvement in its cost- to-income ratio which has fallen to 48.6% from 51.8% in Q1. It has set a cost-to-income ratio target of 40% by FY19.
For the reporting quarter, its revenue rose 12% to Rs505 crore from Rs450 crore a year ago, while its expenses rose a similar percentage to Rs176 crore from Rs158 crore, the company said in a statement. Net interest income rose 13% to Rs261 crore.
For the first six months of the current financial year, its net income plunged 78% to Rs82 crore from Rs382 crore, the company said. It said cumulative collection efficiency rose to 99.8 per cent, while its loans disbursals rose to Rs12,582 crore between January and 15 October, taking its gross loan portfolio to Rs10,697 crore. For the reporting quarter, its disbursements grew 22% to Rs4,288 crore. It has set a loan book of Rs19,500 crore for FY18, managing director and chief executive M.R. Rao said.
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