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Time of India
25-05-2025
- Business
- Time of India
Microfinance stress takes toll on FY25 profits
Representative image CHENNAI: Stress in the sector has left microfinance institutions bleeding. Listed MFIs have either reported a loss or a substantial decrease in their profits in the March quarter. This comes on the back of multiple factors including deterioration in asset quality, rising credit costs, borrower overleveraging and rising borrower overlaps that impacted the performance of microfinance companies during FY25. Muthoot Microfin posted a loss of Rs 401 crore in Q4 FY25 while Fusion Finance ((formerly Fusion Micro Finance) reported a loss of Rs 164 crore during the same period. Microfinance lender CreditAccess Grameen's net profit dropped by 88% to Rs 47 crore in Q4 FY25 against Rs 397 crore in the year-ago period. Satin Creditcare Network's standalone PAT in Q4 FY25 declined by 67% to Rs 41 crore from Rs 125 crore during the year-ago quarter. Mahendra Patil, founder and managing partner, MP Financial Advisory Services LLP said, the gross non-performing asset (GNPA) ratio for the sector surged to 16% at the end of FY25, up from 8.8% a year earlier, indicating a significant rise in defaults. However, the microfinance sector is projected to grow by 12-15% in FY26 under a conservative scenario, returning to FY24 levels, Patil added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
24-05-2025
- Business
- Time of India
Microfinance firm Fusion suffers 4th consecutive quarterly loss
Fusion Finance reported a net loss of Rs 165 crore for Q4 FY25, marking its fourth consecutive quarterly loss due to severe asset quality stress. Increased provisions for bad loans, totaling Rs 255 crore, significantly impacted profitability. The company is seeking extensions from lenders after breaching financial covenants on borrowings of Rs 4,763 crore. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Kolkata: Microfinance company Fusion Finance reported its fourth quarterly loss in a row due to the ongoing severe asset quality stress that the sector is suffering lender's net loss stood at Rs 165 crore for the fourth quarter of FY25, as compared with a net profit of Rs 133 crore in the year-ago period, owing to higher provisions to cover bad loans. It set aside Rs 255 crore during the quarter as compared with Rs 119 crore operating profit for the quarter under review stood 69% lower at Rs 90 crore against Rs 291 crore in the year-ago interest margin was at 8.57% as compared with 11.59% over the same period. Its interest income at Rs 4,449 crore was 22% lower year-on-year, in line with squeezed business had reported a net loss of Rs 36 crore in the first quarter, Rs 305 crore in the second quarter and Rs 719 crore in the third quarter of FY25. Provision was the highest during the third quarter at Rs 572 Fusion's annual net loss stood at Rs 1,225 crore as compared with Rs 505 crore net profit in the preceding company breached various financial covenants in respect of borrowings amounting to Rs 4,763 crore as of March 31, 2025. Therefore, these borrowings become repayable on demand. The company has obtained extension from its lenders for these breaches for borrowings of Rs 4,080 crore. It is in discussion with the remaining lenders to obtain similar extensions, the company management said in a regulatory filing to the stock company holds cash and cash equivalents and liquid assets aggregating Rs 798 crore."The company remains committed to improving recovery efforts at the field level and is confident of achieving better outcomes. Any subsequent recoveries will be recognised as income and credited to the statement of profit and loss in the period of recovery," managing director Devesh Sachdev lender's gross non-performing assets ratio stood at 7.92% at the end of March against 2.89% a year back. Gross NPA was at 12.6% at the end of December 2024. The ratio came down sequentially due to accelerated write-off of bad loans to the tune of Rs 405 crore during the assets under management dipped 22% year-on-year to Rs 8,980 crore at the end of FY25 from Rs 11,476 crore as it slowed disbursal to prevent further worsening of asset capital adequacy ratio stood at 22.4%, well above the regulatory stipulation.
Economic Times
24-05-2025
- Business
- Economic Times
Fusion Finance suffers 4th consecutive quarterly loss at Rs 165 crore
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Microfinance company Fusion Finance reported its fourth quarterly loss in a row due to the ongoing severe asset quality stress that the sector is suffering lender's net loss stood at Rs 165 crore for the fourth quarter of FY25, as compared with a net profit of Rs 133 in the year ago period, owing to higher provisions to cover bad loans. It set aside Rs 255 crore during the quarter as compared with 119 crore operating profit for the quarter under review stood 69% lower at Rs 90 crore against Rs 291 crore in the year-ago interest margin was at 8.57% as compared with Rs 11.59% over the same period. Its interest income at Rs 4449 crore was 22% lower year-on-year, in line with squeezed business had reported a net loss of Rs 36 crore in the first quarter, Rs 305 crore in the second quarter and 719 crore in the third quarter of FY25. Provision was the highest during the third quarter at Rs 572 Fusion's annual net loss stood at Rs 1225 as compared with Rs Rs 505 crore net profit in the preceding company breached various financial covenants in respect of borrowings amounting to Rs 4763 crore as of March 31, 2025. Therefore, these borrowings become repayable on demand. The company has obtained extension from its lenders for these breaches for borrowings of Rs 4080 crore. It is in discussion with the remaining lenders to obtain similar extensions, the company management said, in a regulatory filing to the stock company holds cash and cash equivalents and liquid assets aggregating Rs 798 crore."The company remains committed to improving recovery efforts at the field level and is confident of achieving better outcomes. Any subsequent recoveries will be recognised as income and credited to the statement of profit and loss in theperiod of recovery," managing director Devesh Sachdev lender's gross non-performing assets ratio stood at 7.92% at the end of March against 2.89% a year back. Gross NPA was at 12.6% at the end of December 2024. The ratio came down sequentially due to accelerated write-off of bad loans to the tune of Rs 405 crore during the assets under management dipped 22% year-on-year to Rs 8980 crore at the end of FY25 from Rs 11476 crore as its slowed disbursal to prevent further worsening of asset capital adequacy ratio stood at 22.4%, well above the regulatory stipulation.
Time of India
24-05-2025
- Business
- Time of India
Fusion Finance suffers 4th consecutive quarterly loss at Rs 165 crore
Microfinance company Fusion Finance reported its fourth quarterly loss in a row due to the ongoing severe asset quality stress that the sector is suffering from. The lender's net loss stood at Rs 165 crore for the fourth quarter of FY25, as compared with a net profit of Rs 133 in the year ago period, owing to higher provisions to cover bad loans. It set aside Rs 255 crore during the quarter as compared with 119 crore earlier. Pre-provision operating profit for the quarter under review stood 69% lower at Rs 90 crore against Rs 291 crore in the year-ago period. Net interest margin was at 8.57% as compared with Rs 11.59% over the same period. Its interest income at Rs 4449 crore was 22% lower year-on-year, in line with squeezed business volume. Fusion had reported a net loss of Rs 36 crore in the first quarter, Rs 305 crore in the second quarter and 719 crore in the third quarter of FY25. Provision was the highest during the third quarter at Rs 572 crore. Consequently, Fusion's annual net loss stood at Rs 1225 as compared with Rs Rs 505 crore net profit in the preceding fiscal. The company breached various financial covenants in respect of borrowings amounting to Rs 4763 crore as of March 31, 2025. Therefore, these borrowings become repayable on demand. The company has obtained extension from its lenders for these breaches for borrowings of Rs 4080 crore. It is in discussion with the remaining lenders to obtain similar extensions, the company management said, in a regulatory filing to the stock exchanges. The company holds cash and cash equivalents and liquid assets aggregating Rs 798 crore. "The company remains committed to improving recovery efforts at the field level and is confident of achieving better outcomes. Any subsequent recoveries will be recognised as income and credited to the statement of profit and loss in the period of recovery," managing director Devesh Sachdev said. The lender's gross non-performing assets ratio stood at 7.92% at the end of March against 2.89% a year back. Gross NPA was at 12.6% at the end of December 2024. The ratio came down sequentially due to accelerated write-off of bad loans to the tune of Rs 405 crore during the quarter. Fusion's assets under management dipped 22% year-on-year to Rs 8980 crore at the end of FY25 from Rs 11476 crore as its slowed disbursal to prevent further worsening of asset quality. Its capital adequacy ratio stood at 22.4%, well above the regulatory stipulation.
Business Standard
24-05-2025
- Business
- Business Standard
Fusion Finance reports standalone net loss of Rs 164.56 crore in the March 2025 quarter
Sales decline 27.85% to Rs 466.08 crore Net loss of Fusion Finance reported to Rs 164.56 crore in the quarter ended March 2025 as against net profit of Rs 132.69 crore during the previous quarter ended March 2024. Sales declined 27.85% to Rs 466.08 crore in the quarter ended March 2025 as against Rs 645.99 crore during the previous quarter ended March 2024. For the full year,net loss reported to Rs 1224.54 crore in the year ended March 2025 as against net profit of Rs 505.29 crore during the previous year ended March 2024. Sales rose 0.13% to Rs 2319.76 crore in the year ended March 2025 as against Rs 2316.73 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 466.08645.99 -28 2319.762316.73 0 OPM % 1.7655.76 - -14.0859.02 - PBDT -161.30174.49 PL -1121.34672.27 PL PBT -164.56171.71 PL -1133.01663.26 PL NP -164.56132.69 PL -1224.54505.29 PL
