Fusion Finance reports Rs 86.5 crore profit in second quarter
The microfinance company saw an increase in net profit and improved its gross non-performing assets ratio to 1.6 per cent.
Microfinance company Fusion Finance earned a net profit of Rs 86.5 crore for the second quarter, according to the Economic Times.
This is an increase from the Rs 62.4 crore profit recorded in the first quarter and a Rs 22.1 crore loss in the same period last year.
The lender's total income rose by about 12 per cent year-on-year to Rs 486 crore, while pre-provision operating profit increased 40 per cent to Rs 125 crore.
Assets under management grew 14 per cent to Rs 8007 crore, and the net interest margin (NIM) improved to 12.5 per cent, expanding 167 bps year-on-year.
The gross non-performing assets ratio fell to 1.6 per cent at the end of September, an improvement of about 301 basis points year-on-year.
Managing director Sanjay Garyali said the company expects growth momentum to improve in Q3 and remains committed to a medium-term AUM growth ambition of 20–25 per cent.