Mumbai: Indiabulls Financial Services Ltd, a securities firm part-owned by Citigroup Inc., said its first-quarter profit more than doubled on higher lending to individuals and fees from selling insurance policies.
Net income, including that of units, rose to Rs166 crore in the three months ended 30 June from Rs76.6 crore a year earlier, the Mumbai-based company said in a statement. Total income doubled to Rs443 crore.
Indian banks and non-banking finance companies are expanding loans and fee income, aided by a consumer boom, as the fastest pace of growth in the economy boosts incomes. Industrial production, a quarter of the country’s economy, expanded 11.7% in the two months ended May, faster than the 10.8% pace registered a year earlier.
Indiabulls Financial Services’s income from loan advances almost tripled to Rs310 crore in the quarter as lending also tripled to Rs4,140 crore, the company said.
Loans to individuals surged more than ninefold to Rs2,740 crore in the period. The company plans to lend as much as Rs6,000 crore this fiscal year.
“We are on course to meet our target,” Gagan Banga, executive director at Indiabulls, said. “We don’t want to exceed the target.”
Indiabulls Financial Services, whose shares rose more than sevenfold in the past 12 months, fell Rs24.65 or 3.71% to close at Rs639.5 on Tuesday.
Indiabulls offers brokerage services in equities, debt and derivatives, gives loans against shares and lends to consumers. Fee income from selling insurance and processing applications for loans grew to Rs31.6 crore from Rs7.3 crore.
The pace of growth of income from stock broking and other capital market-related activities at Indiabulls Financial Services slowed to 4%, rising to Rs100 crore, after almost doubling a year earlier to Rs98.6 crore, as the company focused on expanding its finance business.
The broking business accounted for 23% of revenue in the quarter, compared with 45% a year earlier.