Financial service provider IIFL today reported 21 per cent jump in consolidated net profit atRs 63 crore in the first quarter ended June 30,2013. The company had posted net profit of Rs 52.2 crore during the same period (April-June) of 2012-13. Total income of the company grew to Rs 676 crore in the first quarter,up 16 per cent from a year ago. “Our core businesses continue to exhibit healthy and steady growth. While capital market related business continued to face headwinds,consumer finance and life insurance distribution maintained steady volume growth.
During the quarter,reduction in gold loan portfolio has impacted margins but has further de-risked and diversified the business mix,” Nirmal Jain,Chairman,IIFL said in a statement. Share of gold loan in financial assets of the company fell from 41.3 per cent in the first quarter of 2012-13 to 29.6 per cent in the first quarter of 2013-14.
Besides,IIFL proposes to convert its existing NBFC,India Infoline Finance Ltd,into a bank. It had submitted its application to RBI for obtaining new bank licence. IIFL is a financial services provider that offers advice and execution for products such as equities and derivatives,commodities,wealth management,asset management,insurance,investment banking and loans.