Capital First net up 36%

Capital First reported a 36 per cent increase in consolidated net profit at ₹78.3 crore in the second quarter against ₹57.6 crore in the year-ago period.

The non-banking finance company’s profit came on the back of a robust increase in net interest income (NII) as well as fee and other income.

In the reporting quarter, NII was up 48 per cent year-on-year (y-o-y) to ₹466 crore. Fee and other income rose 31 per cent to ₹98.3 crore.

Operating expenses were up 40 per cent at ₹289 crore. Provisions rose 53 per cent to ₹158 crore. The company’s loan book grew 22 per cent to ₹18,475 crore as at September-end 2017. Its product offerings include loans against property as well as MSME , consumer and home loans.

V Vaidyanathan, Executive Chairman, attributed his company’s increased profitability to income growth outpacing growth in operating expenses. He added that there was good pick up in MSME and home loans.

Vaidyanathan said the full year loan growth projection has been revised upwards to 30-35 per cent from 20-25 per cent.