City-based micro-finance non-banking financial company (NBFC), Arman Financial Services Ltd, reported a sharp 138 per cent jump in net profit for the first quarter ended June 30, 2019.

Arman posted a net profit of Rs 12.1 crore for the quarter under review as against Rs 5.1 crore in the same quarter last year. The NPA levels of the company also declined on a year-on-year basis. Gross NPAs stood at 1.1 per cent, down 51 basis points as against last year, and net NPAs stood at 0.6 per cent, down 41 bps from the same time last year.

The company's assets under management grew by 57 per cent to Rs 722.5 crore, up from Rs 460.3 crore reported last year. Disbursements saw a 24 per cent jump on a year-on-year basis to Rs 191.5 crore for the quarter under review. Gross total income for the quarter increased by 69 per cent to Rs 48.2 crore, up from Rs 28.5 crore.

Jayendra Patel, Vice Chairman & Managing Director, Arman Financial Services said, "Despite the ongoing liquidity tightening and other macroeconomic headwinds, Arman delivered a strong all-round performance in the first quarter, driven by robust growth in our loan book, combined with an improvement in NIM, cost-to-income ratio and asset quality."

He further added that it was the first quarter of the Indian Accounting Standard (IndAS) implementation, which has resulted in several notional changes in the financials, compared to the previous iGAAP Standards. "Growth in our loan assets was characterised by a healthy jump across all three of our lending segments. Further, we enhanced our geographic presence by launching 41 new branches during the quarter as part of our FY20 expansion strategy," said Patel.

Arman shares jumped nearly 8 per cent to close at Rs 415 on the NSE om Friday.

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