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Economic Times
26-06-2025
- Business
- Economic Times
Indostar banks on improving asset quality, branch expansion for growth
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The stock of Indostar Capital has gained 21% since its March quarter result declared on April 29 compared with nearly 4.5% increase in the ET NBFC index. The mid-tier nonbanking financial company (NBFC) reported strong growth in net interest income and improved asset quality amid tightened lending policies. The company sold stressed loans in a transaction with an asset reconstruction company (ARC) during the quarter which is expected to keep asset quality high in FY26 as cost-income ratio has historically been higher in the vicinity of 70%. It has undertaken a cost optimisation drive to rationalise operating costs. The company aims to bring the cost-income ratio down to around 50% in the coming the past two years, the company has been focusing on expanding its reach. It added over 150 branches during the period to take the total count to 587 at the end of March 2025. It also augmented the workforce significantly by 1764 to 5,763. The management expects these initiatives will help in achieving 12-15% growth in assets under management (AUM). In FY25, its AUM grew by 26.1% to Rs11,053 retail share in the AUM reached 99% in FY25 from 26% in FY18. It undertakes commercial vehicle financing, small and medium enterprises (SME) lending, and loan against property (LAP).The company plans to replace high cost debt worth Rs 800 crore attracting an interest rate of 12% with fresh borrowings at a coupon rate of 10% in the June 2025 quarter. This is expected to reduce the debt servicing cost. The company spent over half of the revenue from operations on interest payment in each of the two years to net profit grew by 2.6% to Rs36.2 crore in the March 2025 quarter. Net interest income (NII) at Rs181 crore fell year-on-year by 22% due a high base of one-time gain in the previous year's comparable quarter. Disbursements at Rs1,535 crore were 13% lower from the year ago as the company implemented tighter lending policies. On a standalone basis, gross non-performing assets (NPA) fell to 4.5% from 5% by similar Oswal expects 94% growth in net profit of Indostar between FY25 and FY27. The brokerage has a buy rating on the stock with a target price of Rs360. On Thursday, it was last traded at Rs352.5 on the BSE.
Time of India
26-06-2025
- Business
- Time of India
Indostar banks on improving asset quality, branch expansion for growth
The stock of Indostar Capital has gained 21% since its March quarter result declared on April 29 compared with nearly 4.5% increase in the ET NBFC index. The mid-tier nonbanking financial company (NBFC) reported strong growth in net interest income and improved asset quality amid tightened lending policies. The company sold stressed loans in a transaction with an asset reconstruction company (ARC) during the quarter which is expected to keep asset quality high in FY26 as well. Indostar's cost-income ratio has historically been higher in the vicinity of 70%. It has undertaken a cost optimisation drive to rationalise operating costs. The company aims to bring the cost-income ratio down to around 50% in the coming quarters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Belly Fat Removal Without Surgery in Philippines: The Price Might Surprise You Belly Fat Removal | Search Ads Undo Over the past two years, the company has been focusing on expanding its reach. It added over 150 branches during the period to take the total count to 587 at the end of March 2025. It also augmented the workforce significantly by 1764 to 5,763. The management expects these initiatives will help in achieving 12-15% growth in assets under management (AUM). In FY25, its AUM grew by 26.1% to Rs11,053 crore. The retail share in the AUM reached 99% in FY25 from 26% in FY18. It undertakes commercial vehicle financing, small and medium enterprises (SME) lending, and loan against property (LAP). The company plans to replace high cost debt worth Rs 800 crore attracting an interest rate of 12% with fresh borrowings at a coupon rate of 10% in the June 2025 quarter. This is expected to reduce the debt servicing cost. The company spent over half of the revenue from operations on interest payment in each of the two years to FY25. Live Events Indostar's net profit grew by 2.6% to Rs36.2 crore in the March 2025 quarter. Net interest income (NII) at Rs181 crore fell year-on-year by 22% due a high base of one-time gain in the previous year's comparable quarter. Disbursements at Rs1,535 crore were 13% lower from the year ago as the company implemented tighter lending policies. On a standalone basis, gross non-performing assets (NPA) fell to 4.5% from 5% by similar comparison. Motilal Oswal expects 94% growth in net profit of Indostar between FY25 and FY27. The brokerage has a buy rating on the stock with a target price of Rs360. On Thursday, it was last traded at Rs352.5 on the BSE.
Express Tribune
18-06-2025
- Health
- Express Tribune
District hospitals low on spending agenda
While the Punjab government has increased the health sector development budget for 2025-26 by 131 per cent as compared to the outgoing financial year, the non-development expenses outweigh the allocation and the tehsil and district hospitals appear to have been accorded a low priority. "We appreciate the Punjab government over the allocation of funds for various pending hospital construction projects, including the Punjab Institute of Cardiology and Bahwalnagr Hospital. However, there are minimum funds for the district and tehsil headquarters hospitals that are the most important for the local residents," said Punjab Young Doctors Association Chairman Dr Salman Haseeb Chairman while commenting on the budget. He also opposed the policy of outsourcing government hospitals. As per the budget documents, the government has allocated Rs181 billion as development budget for the health sector for the year 2025-26 and Rs450 billion for non-developmental expenditures. The budget estimates for the foreign programme loans have been set at Rs47.896 billion. The provincial government is likely to receive budgetary support loans from international development partners for the National Health Support, Access to Clean Energy Investment, Punjab Family Planning, Punjab Green Development, Punjab Resource Improvement and Digital Effectiveness (PRIDE), Punjab Affordable Housing, Punjab Clean Air and Resilient STEM Secondary Education programmes. The flagship healthcare initiatives include a medical city, free medicines and new centres for cancer and cardiac care. The establishment of Nawaz Sharif Medical District in Lahore has been proposed, for which Rs109 billion has been allocated in 2025-26 for land acquisition. Under the project, Rs54 billion has been allocated for Children Hospital-II and Institute of Genetic Blood Diseases, Institute of Surgical Orthopedic and Medical Rehabilitation, Centre of Excellence for Nursing Education, Specialised Medical Hospital and College, a 1,000-bed Cardiac Institute, Medical University and state-of-the-art diagnostic lab. For the construction of medical colleges in Narowal, Okara and Layyah, an amount of Rs16 billion has been allocated. For the establishment of a children's hospital in Rawalpindi, Rs8.5 billion has been set aside. For a teaching hospital in Sialkot, Rs7 billion has been allocated. An allocation of Rs12.5 billion has been proposed for the Maryam Nawaz Community Health Services Programme through outsourced community health inspectors, for the establishment of centres of excellence for nursing education in Multan and Rawalpindi with ADB loan, Rs15 billion has been set aside. Moreover, for the establishment of burns units in Bahawalpur and Rahim Yar Khan, Rs5 billion has been allocated. Budgetary allocations have also been made for revamping of the remaining BHUs across Punjab, dispensaries and mother and child health centres along with the provision of equipment, furniture and fixtures. Under the Chief Minister's Special Initiative for Dialysis, Rs8.6 billion has been earmarked, while for provision of free medicines in public sector hospitals, Rs79.5 billion has been set aside. With an amount of Rs25 billion, a Universal Health programme will be launched for provision of cheap and quality treatment facilities. For setting up cath labs at the district level, Rs3 billion has been allocated in the budget. General Cadre Doctors Association President Dr Masood Sheikh said the government had allocated ample budget for providing free medicines to patients but the amount should utilised transparently. He said many posts were vacant in the sector and the development expenditure needed to be hiked.
