IIFL Finance’s June quarter profit increased 43% to Rs. 473 Cr.

On increased loan growth, driven by gold and home financing, IIFL financing on Thursday announced a 43% increase in net income to Rs 473 crore for the June 2023 quarter.

While loans for gold increased by 29%, loans for home financing increased by 23%, loans for microloans increased by 63%, and loans for property increased by 54%, overall loan sales increased by 31% to Rs 68,178 crore, according to a statement from the company. Off-book assets increased by 45% to Rs 26,663 crore.

According to the corporation, its revenue increased by 21% year over year to Rs 1,420 crore.

 

In line with the general industry trend, the business also observed an improvement in asset quality, with gross non-performing assets (NPAs) dropping from 2.6% to 1.8% for the reporting quarter to 1.1% from 1.5%. It has a 159 percent provision coverage for problematic loans.

 

The average borrowing rate for the corporation jumped by 44 basis points to 9.1 percent.

 

96% of loans are retail loans, and 67% of them (apart from gold loans) are PSL-compliant. The securitized assets book was worth Rs 808 crore, the allocated loan book was worth Rs 17,700 crore, and the co-lending book was worth Rs 8,963 crore.

 

Retail home loans increased by 23% year over year to Rs 22,838 crore, with affordable and non-metro loans making up the majority of the growth. Gold loans, the second-largest book, increased by 29% to Rs 22,142 crore, and the microfinance book increased by 63% to Rs 10,255 crore across 24.1 lakh customers.

 

With construction and real estate book at Rs 2,732 crore and loan against property up 19% to Rs 6,836 crore, respectively.

 

The business has committed credit lines from banks and other financial institutions totaling Rs 6,510 crore in cash and cash equivalents, and during the quarter it raised Rs 4,504 crore via term loans, bonds, and refinancing. A further Rs 4,155 core was raised by direct assignment.