Affordable housing-focused shadow bank Home First Finance on Tuesday reported a 6.7 percent year-on-year jump in net profit at Rs 64 crore for the fourth quarter that ended March 31, 2023. In the corresponding quarter last year, the company posted a net profit of Rs 60 crore.

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The net interest income (NII) of the bank jumped 31.4 percent, coming at Rs 111.8 crore against Rs 85.1 crore in the corresponding quarter of FY19, the lender said in an exchange filing.

The company's disbursals increased from Rs 2,031 crore in FY22 to Rs 3,013 crore in FY23, leading to AUM growth of 33.8 percent from Rs 5,380 crore to Rs 7,198 crore, it said.

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During FY23, profit after tax increased by 31 percent from Rs 174 crore to Rs 228 crore. Return on equity (ROE) improved sharply by 170 bps to 13.5 percent in FY23 over FY22’s 11.8 percent.

The fourth quarter witnessed an ROE of 14.4 percent against 12.5 percent for the corresponding quarter last year. Improvement in ROE was backed by strong NIMs (6.4 percent vs 5.4 percent year-on-year), optimal use of cash, and judicious operating costs.

Manoj Viswanathan, managing director and chief executive officer, said our physical branch office distribution crossed 100 branches (111 branches as of March 31, 2023) and disbursed more than Rs 3,000 crore in this financial year which is the highest ever since the commencement of business.

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"This year also saw the entry of International Finance Corporation (a member of World Bank Group) as a lending partner to the company with the issue of NCDs aggregating to Rs 280 crore. We also received a “low risk” ESG rating from Morningstar’s Sustainalytics, a testament to our best-in-class business practices," Viswanathan said.

The Board of Directors have recommended a dividend on equity shares at the rate of Rs 2.60 per share (130 percent) of the face value of Rs 2 each, for the financial year ending March 31, 2023, the company said.

(Edited by : Pradeep John)