Fedbank Financial Services Ltd reported a 52.5% year-on-year rise in net profit for the first quarter, aided by strong growth in income. The company's net profit stood at Rs 114 crore in the quarter, compared with Rs 75 crore in the corresponding period last year.
The total income for the quarter increased 29.6% year-on-year to Rs 670 crore, up from Rs 517 crore a year earlier.
The robust earnings growth comes as the non-banking financial company (NBFC) continued to expand its lending business, with income growth outpacing the rise seen in the year-ago period.
Fedbank Financial Q1 Results - YoY
- Net profit up 52.5% at Rs 114 crore vs Rs 75 crore.
- Total income up 29.6% at Rs 670 crore vs Rs 517 crore.
Fedbank Financial Services operates as a dedicated MSME lender entirely focused on collateralised lending. Serving customers such as tailoring businesses, restaurants, and small fabrication units, the company relies on a "twin-engine" business model driven by gold and mortgage loans.
Gold loans form the bulk of their portfolio, accounting for 52.9% of the Assets Under Management (AUM), while mortgage loans which include medium and small ticket loans against property (LAP) as well as housing loans, make up the remainder.
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