Financial Services company IIFL Finance announced Q3FY25 results For the Q3FY25, the Company reported profit after tax of Rs 82 crore (before non-controlling interest) down 85% YoY. Home loan AUM grew by 19% and MSME loan AUM grew by 31%. Microfinance de-grew 14% on YoY basis while Gold loans de-grew by 39% YoY. Overall loan AUM de-grew by 8% YoY to Rs 71,410 crore. The company’s annualized ROE and ROA for Q3FY25 stood at 1.4% and 0.6% respectively. Pre-provision operating profit stood at Rs 534 crore for the quarter, down 45% YoY. Average borrowing costs for the quarter increased 9 bps YoY and 1 bps QoQ to 9.16%. 98% of their loans are retail in nature and 69% of our retail loans (excluding gold loans which are not classified as PSL loans but are still zero risk weights for the banks on a net exposure basis) are PSL compliant. The assigned loan book, is currently at Rs 12,472 crore. Besides the co-lending book is at Rs 9,236 crore. GNPA stood at 2.4% up by 70 bps YoY and NNPA stood at 1.0% up 14 bps YoY, as at December 31, 2024. With implementation of Expected Credit Loss under Ind AS, overall provision coverage on NPAs stands at 114%. Total CRAR stood at 22.0% as at December 31, 2024, as against minimum regulatory requirement of 15%. The total presence of branches stood at 4,858 as at the end of Q3FY25 compared to 4,810 branches last quarter, spanning the length and breadth of the country. Nirmal Jain, Managing Director, IIFL Finance, said: “This quarter has been challenging, with asset quality stress in microfinance, unsecured lending, and small-ticket LAP reflecting broader macroeconomic trends. Our gold loan portfolio yield remains under pressure as we work to regain customers. Economic headwinds persist, as seen in December 2024’s industrial output slowing to 3.2%. The recent 25 bps rate cut the first in five years signals policy support for growth. With fiscal and monetary measures driving recovery, we believe the worst is behind us, and performance should improve meaningfully in the coming quarters.” Result PDF