Q4 Results: Gruh Finance’s Loan Growth At 33-Quarter Low Due To Liquidity Crisis
Gruh Finance Ltd.'s loan growth for the three months ended March was the slowest in 33 quarters due to the ongoing liquidity crisis spurred by defaults by the debt-laden Infrastructure Leasing & Financial Services Ltd.
“We've been slightly slower as compared to normal situations, besides the demand is also not moving at desired pace,” Sudhin Choksey, managing director of Gruh Finance, told BloombergQuint during a post-earnings conversation, adding that the company is focusing on building liquidity. Disbursements, Choksey said, declined 9 percent over last year.
“In the third quarter, we saw demand practically coming to a standstill,” Choksey said, noting that supply has always been an issue in their segment. All other issues in the last two years have been resolved, he said.
Choksey said they have received all necessary approval for the lender's merger with Bandhan Bank and are awaiting a final order from the National Company Law Tribunal.
Key Highlights:
- Most players are in the process of correcting their asset-liability management situation
- Expects industry players to move ahead cautiously and carefully
Q4 Earnings Highlights (YoY):
- Net Interest Income fell 4.2 percent to Rs 169.7 crore
- Net profit up 1.2 percent at Rs 129.7 crore
- Loan assets rise 12 percent to Rs 17,408 crore, versus Rs 15,588 crore
- Board approves raising Rs 5,100 crore via debt instrumentsasset-liability management
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