Brokerage firm India Infoline (IIFL) on Wednesday reported an 8 per cent dip in consolidated net profit at Rs 67 crore for the third quarter that ended in December 2013, on account of slow growth in capital market activities.
The company's consolidated net stood at Rs 73.2 crore in the corresponding quarter a year ago.
"The reason for decline in our profit this quarter (Q3) was on account of fall in capital market income", IIFL managing director R Venkataraman said.
The brokerage's capital market income stood at Rs 82 crore in the third quarter of the ongoing fiscal year (2013-14), down 42 per cent y-o-y, as market volumes in all the three components - retail cash, commodity and currency - declined in the quarter.
Income marginally declined to Rs 689.7 crore as against Rs 695.7 crore a year ago.
Gross non-performing assets (NPAs) rose marginally to 0.83 per cent from 0.7 per cent a year ago. Net NPAs stood at 0.40 per cent as compared to 0.25 per cent in the year-ago quarter.
IIFL's capital adequacy during the quarter stood at 20.3 per cent, while net interest margins (NIM) remained steady at 7 per cent.
The loan portfolio stood at Rs 10,042 crore as on December 31, 2013, a growth of 12 per cent year-on-year.
IIFL's loan book consists of mortgages, property loans, capital market products, gold loans, commercial vehicle loans and medical equipment financing.
Mr Venkataraman said mortgage loan forms 52 per cent of the loan book and the company will continue to focus on it going forward.
In the quarter ended December, IIFL share of gold loan in financial assets fell to 25.7 per cent as against 36.9 per last year.
"Banks and unorganised sectors had eaten away share in gold loan business but now with RBI relaxation of LTV norms, we expect some growth coming in there."
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