Fusion Micro Finance reported a 60% year-on-year rise in net profit at Rs 121 crore for the June quarter, buoyed by business expansion and asset quality improvement.
Net interest income increased by about 60% at Rs 294 crore against Rs 185 crore in the year-ago period. Total income rose 53.4% at Rs 553 crore.
Pre-provision operating profit nearly doubled at Rs 235 crore as compared with Rs 120 crore in the year-ago quarter.
‘We are confident of maintaining the momentum going forward,’ managing director Devesh Sachdev said.
‘Our NIM has expanded to 10.89% and there would be further expansion before it stabilizes,’ he added.
Fusion’s assets under management grew 31.4% year-on-year to Rs 9,712 crore at the end of June. Disbursements during the quarter under review grew 15.2% at Rs 2,285 crore.
It said total expected credit loss is Rs 328.4 crore including management overlay of Rs 58 crore.
Gross non-performing assets ratio reduced to 3.20% at the end of June from 3.46% three months prior to this. Net NPA fell to 0.78% from 0.87%.
The lender wrote off bad loans to the tune of Rs 59.36 crore.
