The fourth quarter net profit was however 88% lower when compared to the year-ago period’s Rs 397 crore, on account of nearly four-fold rise in provisions to cover bad loans for the same periods.
The company meanwhile announced a change in guard as managing director Udaya Kumar Hebbar will complete his term on June 25. Executive director Ganesh Narayanan will succeed him as managing director and chief executive officer from June 26 for the next five years, subject to regulatory approval.
“We have successfully reversed the trend in new PAR (portfolio at risk) accretion across all states to near-normal levels, except Karnataka, which should take another two months to normalise,” Hebbar said.
“This shift, which began in the second half of November 2024, marks a pivotal point in our growth strategy,” he said.
He will be appointed as non-executive director on the board upon completing his term as the head of the organisation. This is however subject to regulatory approval.The annual net profit for the country’s largest NBFC-MFI stood at Rs 531 crore as compared with Rs 1446 crore in the preceding fiscal.For the quarter under review, its total income declined by 3.5% year-on-year at Rs 1,408 crore while net interest income dipped by 5% at Rs 876 crore.
Pre-provision operating profit stood 7% lower at Rs 634 crore as compared with Rs 683 crore in the year-ago period while provisions to cover bad loans stood at Rs 583 crore against Rs 153 crore.
The lender set aside Rs 752 crore as provisions in the third quarter.
Its gross non-performing assets ratio rose to 4.76% at the end of March from 3.99% three months back and 1.18% a year ago.
The company’s total provisions against expected credit loss stood at Rs 1,309 crore covering 5.07% of the portfolio. Net NPA stood at 1.73%.
Its assets under management declined 2.9% year-on-year to Rs 25,948 crore while borrower base shrank 4.6% to 46.94 lakh.