For Piramal Finance, NII jumped to ₹1,132 crore in second quarter from ₹881 crore a year ago, along with 22% growth in assets under management to ₹91,447 crore. Jairam Sridharan, MD and CEO, Piramal Finance, said that it was a “strong quarter” and that the company saw “growth with the right margin.”
Similarly, Poonawalla Fincorp’s NII rose over 37% year-on-year to ₹764 crore. The lender’s AUM stood at ₹47,700 crore as on September 30, up 68% on year. The company said that AUM growth in the quarter was supported by increased contribution from new business verticals.
LOWER COSTS
Piramal Finance’s consolidated net interest margin rose 104 basis points YoY to 6.1% during the second quarter. “The liability side environment has been reasonably benign, and we saw our cost of borrowing reduced by 19 basis points during the course of the quarter,” Jairam said.
He added that they do not expect further benefit of the Reserve Bank of India’s rate cut in the third quarter but may expect the impact in the fourth quarter. “Banks have not cut MCLRs (marginal cost of fund-based lending rates) deeply yet. That should start happening later this quarter.”
Arvind Kapil, MD& CEO of Poonawalla Fincorp, said that the improved liability management, particularly through cost effective non-convertible debentures issuances, strengthened the company’s funding profile.