Fullerton India net profit surges 32 pc in FY16

20 May 2016

Helped by improved assets under management and gains in rural business, Fullerton India has reported 32.1 per cent rise in its net earnings to Rs 397.6 crore for the financial year ending March 31, 2016.

It had a profit after tax of Rs 301 crore in the previous fiscal 2014-15.

Fullerton India is a unit of Fullerton Financial Holdings, which is a subsidiary of Temasek Holdings of Singapore

"While the AUM of the company grew by 33 per cent to Rs 11,508 crore in fiscal 2015-16 from Rs 8,669 crore in fiscal 2014-15, its rural business grew by 60 per cent during the reporting period. The company added 3,86,295 loan accounts, taking the total number of loan accounts to 16,49,075 in the reporting period," Fullerton India CEO Shantanu Mitra told reporters here today.

"We are looking at increasing our AUM to around Rs 14,000 crore and opening of over 50 branches by the fiscal-end," he added.

"Going forward, we would look at both rural and urban business and the growth will also come from the expanded network," Mitra said.

Total revenue was up by 32 per cent to Rs 2,277 crore in 2015-16 from Rs 1,720 crore in the previous year. Similarly, the capital adequacy ratio of the company improved to 21.9 per cent from 19.6 per cent.

Net NPA also improved marginally to 1.3 per cent, while the company recovered Rs 100 crore during the year.

Provision made by the company went up by 22 per cent to Rs 204 crore in the reporting period. It includes Rs 31.5 crore of provision which was made by the company due to the tightening of provisioning norms by RBI.

As of now, the company employs 8,738 professionals across its corporate office and 488 branches, with nearly 65 per cent of the workforce serving the rural business under the brand Gramshakti.