Magma Fincorp Q1 net profit flat on higher NPA provision
MUMBAI, AUG 1 : Magma Fincorp Ltd Saturday said its first quarter consolidated net profit remained little changed after the company made higher provision for non-performing assets as per the revised regulatory framework for Non-Banking Finance Companies.
Magma Fincorp reported consolidated net profit of Rs 452.2 million for the quarter ended Jun 30, 2015 compared with Rs 434 million a year ago, while total income rose nearly 12% to Rs 6.08 billion during the same quarter from Rs 5.44 billion a year ago.
On Nov 10, 2014, the Reserve Bank of India revised NBFCs rule to mark bad loans. NBFCs from Nov 10 have to mark a loan as bad loans if the interest has not been paid for 90 days or 3 months as against earlier rule of six months.
To compile with this rule, the company had to make extra provision for NPAs causing the same to jump to Rs 872.46 million in the June quarter from Rs 468.35 million a year ago.
Friday, share prices of Magma Fincorp ended at Rs 91.10, up 3.29% on the Mumbai Stock Exchange.
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