March quarter net profit was above estimates collated by Bloomberg, growing by 59% year-on-year.What should cheer investors is also the factors behind this net profit surge.
The southern India-based lender’s asset under management grew 22% year-on-year and a 15% fall in provisions helped boost net profit.
The fall in provisions is a fallout of a drop in bad assets.The company’s loans under stage three of estimated credit loss dropped for the second straight quarter and formed just 2.16% of total loans.
Stage three assets are those loans where the repayments are overdue beyond 90 days.What’s more, the non-bank finance company (NBFC) doesn’t seem to be adversely affected by the coronavirus pandemic to the extent its peers are.