IIFL Finance | Photo: Facebook
IIFL Finance on Tuesday reported a 28 per cent decline in consolidated profit to Rs 338 crore for the June quarter of FY25 as the RBI imposed a ban on its gold lending business.
The NBFC posted a profit of Rs 473 crore in the same quarter a year ago.
The Reserve Bank of India (RBI) on March 4 had banned IIFL Finance from providing gold loans with immediate effect, citing multiple concerns raised by regulators, including serious lapses in testing and certification of the purity of the yellow metal.
IIFL Finance said in a filing with the regulator that total revenue in the quarter under review rose to Rs 2,625 crore from Rs 2,370 crore in the same period last year.
The bank’s interest income rose to Rs 2,472 cr from Rs 2,198 cr in the first quarter of the previous year. Expenses also rose to Rs 1,034 cr from Rs 888 cr.
Asset quality deteriorated, with gross non-performing assets (NPAs) rising to 2.25 percent from 1.8 percent at end-June 2023.
Net NPLs remained flat at 1.1 percent of advances at the end of June 2024.
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First print: Aug 6, 2024 | 9:07 PM IST