MUMBAI: Shriram Finance, the largest asset financing non-banking player, has reported a 9% growth in standalone net income for the three months to June at Rs 2,155.7 crore, buoyed by a double-digit jump in interest income and stable asset quality, even though the key net interest income inched down 41 bps to 6,051 crore.
Total income rose 20% to Rs 11,542.44 crore and the total assets under management increased by 16.62% to Rs 2.72 trillion, driven by growth in key segments such as commercial vehicles. Of the total AUM, around 45% or Rs 1.23 trillion, come from the commercial vehicle segment.
Net interest income increased 12.55% to Rs 6,026.43 crores from Rs 5,354.47 crore in the same period in the previous year.
Interest income, the primary revenue driver for any lender, rose nearly 19% to Rs 11,173.2 crore, while fee-based income and fair value gains also contributed to the top line.
Expenses for the quarter increased to Rs 8,635 crore from Rs 6,943 crore, led by a 30% jump in finance costs and higher impairment provisions on financial instruments. The company set aside Rs 1,285.7 crore in provisions, compared to Rs 1,187.6 crore in the same period last year.
The company’s asset quality remained resilient, with gross non-performing assets easing to 4.53% from 5.39% a year earlier and net NPAs also improving marginally to 2.57% while provision coverage was maintained at 44.3 per cent.