New Delhi, IIFL Finance on Tuesday posted 28 per cent decline in consolidated profit at Rs 338 crore for June quarter FY25 as RBI imposed ban on its gold loan business. The NBFC had earned a profit of Rs 473 crore in the same quarter a year ago.
The Reserve Bank of India (RBI) on March 4 barred IIFL Finance from disbursing gold loans with immediate effect following multiple supervisory concerns, including serious deviations in assaying and certifying the purity of the yellow metal.
Total income increased to Rs 2,625 crore during the quarter under review from Rs 2,370 crore in the same period last year, IIFL Finance said in a regulatory filing.
Interest income of the bank rose to Rs 2,472 crore from Rs 2,198 crore in the first quarter of previous year. Expenses also increased to Rs 1,034 crore from Rs 888 crore.
The asset quality deteriorated with gross non-performing assets (NPAs) rising to 2.25 per cent from 1.8 per cent at the end of June 2023.
Net NPAs remained flat at 1.1 per cent of advances at the end of June 2024.
