LIC-owned NBFC declares Q4 results 2025, 10% final dividend in FY25
Life Insurance Corporation of India (LIC)-owned non-banking finance company Paisalo Digital on Friday, May 9, announced a 25% jump in standalone net profit for the fourth quarter of the financial year 2024-2025 (Q4 FY25) to ₹ 45 crore, as against ₹ 36 crore in the corresponding period last year.
Its net interest income (NII), which is the difference between interest earned and expended, for the quarter under review came in at ₹ 96 crore, 41% higher on a year-on-year (YoY) basis. Overall interest income was at ₹ 178.09 crore in the March 2025 quarter, higher than ₹ 147.73 crore in the same period a year ago.
GNPA and NNPA stood at 0.99% and 0.76% as at Q4 FY 2025 compared to 0.21% and 0.02% as at Q4 FY 2024. The company is continuing to augment its debt management infrastructure as a mitigation measure, it said in an investor presentation.
During the quarter, Paisalo Digital recorded the highest-ever AUM at ₹ 5232.8 crore, as against Q4 FY 2024 at ₹ 4,586 crore, a growth of 14.10%.
In Q4, the company added a highest-ever 1.52 million customers to its franchise. In FY 2025, the company added a record 5.16 million customers to its customer franchise. The total customer franchise stood at 9.45 million as of Q4 FY 2025, compared to 4.29 million as of Q4 FY 2024.
The total geographic footprint as of FY 2025 stood at 3,565 touchpoints across 22 states, compared to 2,455 touchpoints in the previous year. In Q4, the company added 27 new touchpoints. As of FY 2025, the touchpoint split includes 351 branches, 1,900 distribution points, and 1,314 Customer Service Points (CSPs).
The Board of Directors of the company recommended a dividend of 10% i.e ₹ 0.10 per equity share of face value of ₹ 1.00 each for FY25. The dividend recommended by the Board of Directors is subject to approval of members of the company at the ensuing AGM of the company, it said.
As of the March 2025 quarter, LIC held 77,59,511 shares of Paisalo Digital, representing a 1.17% stake.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
an hour ago
- Economic Times
Navigating Growth: Insights into the Life Insurance Sector
Sector Performance and Outlook Top Companies Analysts Recommend Based on Upside Potential Company Name Current Price Stock Score Recommendation Upside Potential Target Price Analyst Count Life Insurance Corporation Of India Rs. 964.8 8 Buy 12% Rs. 1,080.00 20 HDFC Life Insurance Company Rs. 765.1 7 Buy 8% Rs. 819.00 33 SBI Life Insurance Company Rs. 1,799.9 8 Buy 8% Rs. 1,940.00 32 Live Events Life Insurance Corporation Of India HDFC Life Insurance Company SBI Life Insurance Company (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The life insurance sector has demonstrated remarkable resilience and growth potential in recent times. With a significant increase in performance over the past year, the sector is poised for further expansion. The recent repo rate cut by the Reserve Bank of India is expected to stimulate economic growth, enhancing liquidity and lowering borrowing costs for consumers and businesses. This policy shift is likely to boost lending activities and increase consumer spending, particularly benefiting small and medium enterprises(SMEs)and the insurance the sector continues to evolve, the positive sentiment among investors is reflected in the upward trajectory of stock prices. The overall outlook for the life insurance sector remains optimistic, with analysts projecting a healthy growth trajectory driven by increased demand for insurance products and services. The potential for credit growth and financial stability further supports this positive outlook, creating a conducive environment for investment and a maximum potential upside of 12% and a minimum of 8%, the sector is attracting attention from investors looking for growth opportunities. The combination of favorable economic policies and a growing awareness of the importance of life insurance is expected to drive the sector's performance in the coming years. Life Insurance Corporation of India is a prominent insurance company engaged in providing a wide range of life insurance products both in India and internationally. The company offers individual and group insurance solutions, including participating, non-participating, and unit-linked products. With a diverse portfolio that includes protection, pension, savings, investment, annuity, health, and variable products, LIC has established itself as a leader in the insurance recommend a 'Buy' for LIC, with a target price of Rs. 1,080.00, indicating a potential upside of 12%. The company's latest financial performance shows a sales figure of Rs. 339,305.63 Cr and a PAT of Rs. 20,895.05 Cr, reflecting a year-on-year PAT growth of 38.58% and a sales growth of 5.2%. Despite some fluctuations in the stock price over the past year, the overall outlook remains positive due to strong fundamentals and growth potential. HDFC Life Insurance Company Ltd is a leading life insurance provider in India, offering a comprehensive range of individual and group insurance solutions. The company's product portfolio includes protection, pension, savings, investment, annuity, and health plans. HDFC Life is known for its innovative products and customer-centric approach, catering to the diverse needs of its a stock score of 7, HDFC Life is also recommended as a 'Buy' with a target price of Rs. 819.00, presenting an upside potential of 8%. The latest financial results indicate sales of Rs. 24,661.87 Cr and a PAT of Rs. 392.02 Cr, with a year-on-year PAT growth of 2.7%. Although there has been a slight decline in sales growth, the company's strong market position and brand reputation continue to support its growth trajectory. SBI Life Insurance Company Limited is a prominent player in the Indian life insurance market, offering a wide array of life insurance products. The company operates through various segments, including participating, non-participating, and linked insurance products. SBI Life is recognized for its robust distribution network and innovative product offerings, catering to both individual and group have rated SBI Life as a 'Buy' with a target price of Rs. 1,940.00, indicating an upside potential of 8%. The company's latest financial performance shows sales of Rs. 23,630.97 Cr and a PAT of Rs. 429.07 Cr, with a year-on-year PAT growth of 18.05%. Despite a decline in sales growth, SBI Life's strong fundamentals and market presence position it well for future growth.
Time of India
an hour ago
- Time of India
FSIB recommends R Doraiswamy as MD and CEO of LIC
The Financial Services Institutions Bureau (FSIB) has recommended Doraiswamy Ramchandran (R. Doraiswamy), the current Managing Director of Life Insurance Corporation of India (LIC) for the position of Chief Executive Officer and Managing Director (CEO & MD) at LIC . FSIB interviewed four candidates from Life Insurance Corporation of India (LIC) on June 11, 2025 for the position of CEO & MD in LIC. 'Keeping in view their performance in the interface, their overall experience and the extant parameters, the Bureau recommends R Doraiswamy for the position of CEO & MD in LIC,' said FSIB. A Graduate in Mathematics from Madurai Kamaraj University, Doraiswamy has 38 years of experience across operations, marketing, technology, and academics. He was instrumental in rolling out of Employee's Front End Application Program (eFEAP) Next, centralization of ULIP systems, automation of repetitive processes etc Prior to taking charge as managing director, Doraiswamy was executive director (information technology/software development). He had headed the southern zonal office, Chennai. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Husband Sold Son's Car After Bad Grades. Parents Turned Pale When He Did This As Revenge Beach Raider Undo Following the end of Siddhartha Mohanty 's term on June 7, the government appointed Sat Pal Bhanoo as the interim MD and CEO of LIC for a three-month term, effective from June 8 to September 7, 2025.
Mint
18 hours ago
- Mint
Reform push: Insurance amendment bill heads to Parliament; changes to IBC, Companies Act will have to wait
NEW DELHI : The Insurance Laws (Amendment) Bill, proposing sweeping reforms such as 100% foreign direct investment (FDI) and composite licensing, is likely to be tabled in the Monsoon Session of Parliament in July, three people aware of the plan said. However, amendments to clarify the Insolvency and Bankruptcy Code (IBC), 2016, and changes to the Companies Act, 2023, are unlikely to make it to the coming session, the people said on the condition of anonymity. The Centre is also awaiting a Parliament select committee's views on the new Income Tax Bill, 2025, meant to simplify direct tax laws, expected in July, so that it can be introduced in the Winter Session of Parliament towards the end of November or early December, said one of the three people quoted above. The select committee, led by the Bharatiya Janata Party's (BJP's) Baijayant Panda, is expected to give its report on the first day of the monsoon session, likely to begin on 21 July. Insurance reforms The insurance amendment bill was slated for introduction in the Budget session, but got delayed as the finance ministry sought to add provisions on 100% FDI and the ease of operational considerations for foreign investors, requiring fresh vetting by the law ministry before cabinet approval. 'Several provisions of the bill required time for regulatory and industry readiness. It has now been finalized," the second person said, adding that the cabinet approval could come soon. The bill focuses on ensuring clarity and preparedness, said the third person. It will revise three key legislations—the Insurance Act, 1938, Life Insurance Corporation (LIC) Act, 1956, and the Insurance Regulatory and Development Authority (IRDA) Act, 1999—paving the way for greater autonomy for the insurance regulator and the LIC for appointments, office setup, and staffing. The comprehensive legislative structure will eliminate the need for future amendments to the LIC Act and related laws to enable composite licensing. Also read | To curb mis-selling, finance ministry tells lenders to stop incentives on insurance The bill proposes composite insurance licences with a higher capital threshold of ₹150 crore while retaining existing capital norms for insurance and reinsurance at ₹100 crore and ₹200 crore, respectively. A composite licence, already allowed in Singapore, Malaysia, and the UK, will allow a single insurer to offer both life and non-life products, currently permitted only through separate entities. Besides allowing 100% FDI, the bill simplifies operating conditions for foreign reinsurers by slashing the net-owned fund requirement from ₹5,000 crore to ₹1,000 crore. Queries emailed to spokespersons for the ministry of finance and corporate affairs on Tuesday remained unanswered. Experts believe the bill will deepen insurers' reach in underserved rural and semi-urban areas, making insurance more accessible with tailored, affordable products. It will also enhance firms' risk management capacity, speed up tech adoption, and grow their customer base, leading to a strong foundation for long-term sectoral growth. However, some industry executives have their reservations. Also read | The health insurance puzzle: 83% Indians aware but only 19% covered 'The reforms are well-intentioned. Well thought-out? Perhaps not. A 100% FDI for insurers will be welcome, but how many will bite remains to be seen. Even now, many foreign partners in joint ventures have not touched the current permissible 74%," said Balasundaram, secretary general, Insurance Brokers Association of India. 'As for composite licences, it is an uncharted area in India, and the outcomes are not easy to predict. Capital for serious insurers has never been an issue; so, the lowering of the minimum requirement does not really add value," he added. He said ease of operations for foreign entities sounds good on paper, but implementation and market conditions will decide whether it will work or not. In short, outcomes remain an act of crystal gazing as of now. Since 2000, when the insurance sector was opened to private players by gradually raising FDI limits from 26% to 74%, it has seen robust growth. Between 2014 and January 2024, while the number of insurers rose from 53 to 70, insurance penetration grew from 3.9% to 4%, and insurance density nearly doubled from $52 to $92. A flat 4% insurance penetration against the global average of 7% "means that while the insurance sector has expanded, the expansion has been in line with the broader economy and has not really outpaced it, which you would expect a sunrise sector to", said Narendra Ganpule, partner and national financial services advisory leader, professional services firm Grant Thornton Bharat. 'The need of the hour is revolutionary changes, which is what the bill attempts to bring about to propel India to achieve its espoused vision of 'Insurance for all by 2047'," he added. Also read | Heath insurance in India ought to cover preventive care as well Pavanjit Singh Dhingra, joint managing director, Prudent Insurance Brokers, echoed his views, saying the proposed changes will help attract the required capital, greater focus, and a wider distribution network, all of which are critical to deepening insurance penetration, especially in underserved and rural markets. The draft bill also empowers the insurance regulator to set relaxed licensing and capital requirements for smaller insurers or single-product entities, replacing the fixed capital clause with a more flexible, consultative framework. It introduces a differential licensing regime to support micro and niche insurers—with a minimum capital of ₹50 crore on a case-by-case basis—in serving low-income and rural populations. It also paves the way for captive insurers, allowing conglomerates to establish in-house insurers to manage group-level risks. In an earlier conference, M. Nagaraju, financial services secretary, had said the new insurance laws would attract global investors, foster competition, enhance product quality, improve customer service, and lower premiums, bringing India on par with economies like Canada, Brazil, Australia, and China. But C.R. Vijayan, former secretary general of the General Insurance Council, a representative body of general insurers, said though the reform measures signal a liberal investment climate, investors will judge it by the sector's long-term returns over a decade or more. 'Long-term returns entail higher risk for investors, especially given the potential impact of a change in government and its implications on investment policies." Corporate reforms While the IBC amendments under discussion mainly seek to clarify legislative provisions in light of certain judicial pronouncements and to make the law more efficient, the proposed Companies Act amendments are based on an expert committee's suggestions for modifying the regulatory framework for statutory auditors and improving the ease of doing business. Bankruptcy law experts said that while further legislative streamlining of the IBC is awaited, all stakeholders should strive for timely decision-making and ensure the sanctity of the debt resolution process. Also read | Indian insurtech startups look overseas as AI reshapes global insurance 'The stakeholders need to develop and follow the right practices in insolvency resolution processes. The regulatory authorities should honour the IBC principles and should not leverage their position as a regulator to recover the dues during the moratorium period," said Anoop Rawat, partner (Insolvency and Bankruptcy) at law firm Shardul Amarchand Mangaldas & Co.
