IIFL Finance CFO says cost of borrowings rose at 28 bps in last 12 months
IIFL Finance Q3 results: IIFL Finance reported growth in various segments in the third quarter. Microfinance witnessed a 54% surge to ₹12,090 crore, digital loans soared by 96% to ₹3,905 crore, and loans against property jumped 27% to ₹7,862 crore.
IIFL Finance Chief Financial Officer (CFO) Kapish Jain has said the cost of borrowings for the company experienced 28 basis points growth in the past 12 months. He attributed this stability to the firm's strategic funding approach, including raising capital through External Commercial Borrowings (ECBs) and engaging with multi-lateral agencies.
Jain's comments came a day after the non-banking financial company (NBFC) announced performance for the December quarter, with a 29% surge in net profit to ₹545 crore.
"The recent positive change in the company's credit rating played a pivotal role in aiding the cost of funds, further supporting its financial position," he told CNBC-TV18.
The CFO added that IIFL Finance has maintained a Compound Annual Growth Rate (CAGR) of 23% for loans over the past five years.
While acknowledging potential challenges in the environment, Jain expressed confidence in the company's ability to navigate and sustain growth.
He further emphasised the company's commitment to digital transformation, with digital loans constituting approximately 5% of the overall portfolio.
He discussed a recent realignment in digital loans, with a focus on offering personal loans to captive customers and incorporating supply chain management into the digital lending space.
IIFL Finance anticipates disbursal growth in the same range for gold financing, with confidence in the continued support from branch additions.
The CFO expressed optimism regarding the company's performance in the fourth quarter of the fiscal year 2023-24, expecting it to be robust.
Meanwhile, IIFL Finance reported growth in various segments in the third quarter. Microfinance witnessed a 54% surge to ₹12,090 crore, digital loans soared by 96% to ₹3,905 crore, and loans against property jumped 27% to ₹7,862 crore.
Construction and real estate books stood at ₹2,889 crore.
The company's total income exhibited 28% growth, reaching ₹1,687.5 crore.
Additionally, there was an improvement in asset quality, with the gross non-performing assets ratio declining to 1.7% and the net non-performing assets ratio declining to 0.9%.
Nirmal Jain, the founder of IIFL Finance, highlighted the positive trend in asset quality and expressed confidence in the company's ability to navigate the changing financial landscape.
(Edited by : Amrita)
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