Financial Express: IIFL Finance Q1FY24 Profit up 43% on Robust Loan Growth, Plans Long-Term Reward, Retention Schemes for Employees
Financial Express: IIFL Finance Q1FY24 Profit up 43% on Robust Loan Growth, Plans Long-Term Reward, Retention Schemes for Employees
Financial Express: IIFL Finance clocked a 43% YoY jump in Q1FY24 profit after tax to Rs 472.9 cr from Rs 329.7 crore in Q1FY23 on the back of robust loan growth in core products – Gold loans and Home loans. Sequentially too, its PAT rose 3% from Rs 457.6 crore. The company is planning innovative long-term reward and retention schemes to fortify competitive edge and stem employee churn in the front level staff.
Its Gross NPA in Q1 remained flat at 1.8% as compared to Q4FY23 but compared to Q1FY23 Gross NPA of 2.6%, it has seen significant reduction YoY, down by 75 bps.
Its Gold loans and Home loans AUM grew by 29% and 23% YoY respectively. The microfinance segment grew by 63% while digital loans and loan against property grew by 54% and 19% YoY respectively. Overall core loan portfolio grew by 31% YoY.
The company’s annualised ROE and ROA for Q1FY24 stood at 19.1% and 3.6% respectively. Pre-provision operating profit stood at Rs. 787 Cr. for the quarter up 20% YoY. Average borrowing costs for the quarter increased 44 bps YoY .
Nirmal Jain, Founder, IIFL Finance said, “We plan to focus on productivity improvement and sharpening our digital edge in the current year. Banks and NBFCs have been witnessing very high employee churn in the front level staff. We plan innovative long-term reward and retention schemes to fortify our competitive edge of superior talent.”
Kapish Jain, Group Chief Financial Officer, IIFL Finance added, “In Q1FY24, we witnessed broad based growth across all our core retail segments without any major expansion. This should enable further improvement in operating efficiency and performance.
