Devesh Sachdev, the Managing Director and CEO of Fusion Micro Finance, on Tuesday, November 7, said he is anticipating that the Net Interest Margin (NIM) in the third and fourth quarters of the financial year will reach between 11.2% and 11.5%, indicating a significant rise in profitability.

Sachdev was speaking to CNBC-TV18 a day after the company reported net profit of ₹546.64 crore in September 2023, marking an increase of 24.33% compared to the same period in 2022. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for September 2023 stood at ₹358.69 crore, marking a growth of 25.82% compared to the same period in 2022.

Sachdev said that the company has witnessed a substantial decrease in the marginal cost of borrowing, a change that has had a positive impact on the NIMs. He said that company's credit rating has received its second upgrade in the past 11 months.

On customer base, the CFO said that Fusion Micro Finance has experienced robust growth in its customer base.

"The organisation has continued to improve its asset quality. Despite facing challenges due to natural disasters, such as floods, Fusion Micro Finance has persevered and remained resilient in its operations. We have also successfully reduced Gross Non-Performing Assets (NPA) to 2.68%, with expectations of further improvements in the upcoming quarters," he told CNBC-TV18.

Going further, he believes that company's Assets Under Management (AUM) is expected to show growth.

(Edited by : Anshul)