Manappuram posts Rs 203 crore loss on Asirvad stress, names new CEO
The
Manappuram Finance
group, in which Bain Capital is set to buy a 42% stake, has suffered a Rs 203 crore consolidated loss for the fourth quarter on account of its subsidiary Asirvad Micro Finance, which is reeling under severe
asset quality stress
.
The Manappuram group earned a Rs 564 crore net profit in the year-ago period.
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On a standalone basis, Manappuram however reported a net profit of Rs 414 crore for the quarter under review which was 3.2% down as compared with Rs 428 crore earlier. Separately, Asirvad suffered Rs 794 crore loss as compared with Rs 138 crore profit in the year ago-quarter. In the third quarter too, the microfinance lender reported a loss of Rs 253 crore.
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With this, Manappuram, which owns 98% in Asirvad, failed to comply with all the financial covenants as mentioned in the debenture trust deed, independent auditor Chokshi & Chokshi LLP said in a note. The
The consolidated financial results of the group include the audited financial results of the holding company and subsidiaries namely, Asirvad
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Micro Finance, Manappuram Home Finance, Manappuram lnsurance Brokers and Manappuram Comptech & Consultants.
Manappuram Finance however declared an interim dividend of Rs 0.50 per equity share of the face value of Rs 2 each. The record date for dividend will be May 15.
The parent company has decided to infuse Rs 500 crore in equity of Asirvad.
Meanwhile, Manappuram has announced the appointment of Deepak Reddy as chief executive officer, effective from August 1, 2025. Consequently, the designation of
Nandakumar VP
, will change to managing director from MD & CEO from July 31. Reddy currently is a Bajaj Finserv executive.
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