For Piramal Finance, NII rose to ₹1,132 crore in the second quarter from ₹881 crore a year ago, along with 22% growth in assets under management to ₹91,447 crore. Jairam Sridharan, MD and CEO of Piramal Finance, said it was a “strong quarter” and the company saw “growth at the right margin”.
Similarly, Poonawalla Fincorp’s NII rose over 37% year-on-year to ₹764 crore. The lender’s assets under management stood at ₹47,700 crore as of September 30, up 68% from the previous year. The company said AUM growth in the quarter was supported by increased contribution from new business activities.
LOWER COSTS
Piramal Finance’s consolidated net interest margin increased 104 basis points year-on-year to 6.1% in the second quarter. “The environment on the liability side was quite favorable and we saw our borrowing costs decline by 19 basis points over the quarter,” Jairam said.
He added that they do not expect further benefits from the Reserve Bank of India’s rate cut in the third quarter, but they can expect the impact in the fourth quarter. “Banks have not yet cut MCLRs (marginal cost of funds-based lending rates) deeply. That should happen later this quarter.”
Arvind Kapil, MD& CEO, Poonawalla Fincorp, said improved liability management, especially through cost-effective non-convertible debentures, strengthened the company’s financing profile.
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