JM Financial net income falls by 12.3% to Rs 190.2 crore in Dec quarter

Financial services firm JM Financial on Friday reported a 12.3 per cent fall in net income at Rs 190.2 crore for the quarter ended December 2022.

Even though the company said its loan book rose 35.5 per cent to Rs 15,234 crore during the quarter, its income growth declined 1.9 per cent to Rs 946.1 crore.

The company did not offer an explanation for the decline in its profit but said the quarterly net profit includes Rs 56.8 crore from IPO financing activity.

It has seen all-round improvement in asset quality with gross NPAs falling steeply to 3.60 per cent from 4.39 per cent and the net NPAs also falling to 2.23 per cent from 2.76 per cent.

SMA-2 or special mention accounts which remain stressed for 60-90 days also more than halved to 1.07 per cent from 2.50 per cent on an annualised basis.

Similarly, total provision to the total loan book declined to 4.11 per cent from 6.96 per cent and the loan book under Covid resolution framework declined to 0.35 per cent from 0.91 per cent.

Its wholesale mortgage book rose 18.7 per cent to Rs 7,938 crore, the retail mortgage book jumped 58.5 per cent to Rs 1,572 crore.

The financial institution financing book increased 8.4-times to Rs 1,009 crore but the capital market book declined close to 4 per cent to Rs 904 crore from Rs 940 crore, taking the total loan book to Rs 15,234 crore, which is a growth of 35.5 per cent, Vishal Kampani, non-executive vice-chairman of the company, said.

He said the asset growth was driven by the mortgage side both retail as well as wholesale and asserted that the company is on track to achieve the loan book guidance provided for the retail and wholesale mortgage businesses. Its mortgage book touched Rs 10,480 crore during the quarter.

Considering global macro conditions, high interest rates, inflation and geopolitical conditions, the equity market is expected to remain volatile in the first half of this calendar year, he warned.