Companies

JM Financial Q1 net profit drops 28%

Our Bureau Mumbai | Updated on July 30, 2020 Published on July 30, 2020

Vishal Kampani, Group MD, JM Financial   -  PAUL NORONHA

Appoints PS Jayakumar as Independent Director

JM Financial has reported a 28 per cent drop in the first-quarter consolidated net profit at ₹140 crore against ₹195 crore in the year-ago period.

The company’s total income in the reporting quarter declined 19 per cent year-on-year (y-o-y) to ₹691 crore (₹857 crore in the year-ago period); profit before tax was down 39 per cent y-o-y at ₹184 crore (₹302 crore).

Covid provisions

The company, in a statement, said: “We have made additional gross provisions of ₹66 crore on account of the uncertainties around Covid-19 for the quarter ended June 30, 2020, thereby taking the total provisions to ₹241 crore on account of the pandemic.”

The company’s total loan book declined 22 per cent y-o-y to stand at ₹10,833 crore as of June 30, 2020, compared with ₹13,926 crore as of June 30, 2019. Gross non-performing assets (NPA) and net NPA rose to 1.80 per cent (0.90 per cent as of June-end 2019) and 1.22 per cent (0.80 per cent), respectively

Vishal Kampani, Managing Director, JM Financial Group, said: “The headwinds due to the Covid-19-induced economic disruptions continue to impact the group’s businesses. During these challenging times, we are maintaining liquidity buffers and healthy leverage ratios.

“...We are intensifying our efforts to steer our businesses through these uncertain times to ensure we continue to serve our clients in the best possible way.”

Meanwhile, JM Financial’s Board of Directors approved the appointment of PS Jayakumar (former MD and CEO of Bank of Baroda) as an Independent Director of the company with effect from July 30. The appointment is subject to the necessary regulatory and other approvals.

The financial services company’s businesses include investment banking, wealth management and securities business, mortgage lending, distressed credit, and asset management.

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Published on July 30, 2020
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