Asirvad’s Gross Non-Performing Assets (Gross NPA) stood at 4.34% at the end of the quarter, compared to 3% in June, whie its Net NPA also saw deterioration to 1.99% from 1.4% in the previous quarter.
Provisions for the quarter stood at ₹203.66 crore, which is an increase of 19% from the previous quarter. When compared on a year-on-year basis (Provisions are generally compared sequentially), the number increases by 122%.
The increase in provisions had an impact on Asirvad’s net profit, which fell to ₹75 crore in the September quarter, a drop of 36% from last year. The net profit during the June quarter stood at ₹100 crore.
Net Interest Income for Asirvad stood at ₹496.18 crore, a growth of 25% from last year and 3.4% from the June quarter.
Asirvad’s advances for the quarter increased by 56.2% on a year-on-year basis, and 5.6% sequentially to ₹10,868 crore.
Manappuram Finance’s shares are out of the F&O ban in today’s trading session, which means new positions can be created in the stock.
CNBC-TV18 had reported about the stress in the MFI space in May this year, which is showing up on the balance sheet of these companies.
Stocks like Spandana Sphoorty reported a net loss during the quarter, while CreditAccess Grameen also reported a deterioration in asset quality.
In a conversation with CNBC-TV18 earlier this week, Digant Haria of GreenEdge Wealth Services mentioned that Manappuram’s MFI business is witnessing pain and that may accelerate post the RBI ban.
On October 18, the Reserve Bank of India barred Asirvad Microfinance and three other NBFCs from sanctioning or disbursing new loans from October 21, 2024.
Shares of Manappuram Finance had ended 3% higher on Wednesday and have declined as much as 30% from their recent peak of ₹230. This fall has turned Manappuram’s returns for 2024 into negative territory.