IndusInd Bank to take over micro finance company Bharat Financial
The Board of Directors of IndusInd Bank Ltd and Bharat Financial Inclusion Ltd on Saturday approved the merger of two…
Bharat Financial Inclusion Ltd shares turned highly volatile on Tuesday, after the non-banking finance company on Monday said that 4.5 per cent of its gross loan portfolio is under risk of slipping into bad loan in the fourth quarter.
The information was given in a quickly arranged conference call with analysts and investors after market hours on Monday.
The management said that portfolio with more than eight weeks overdue stood at 4.5 per cent of the total loan book which is higher than 0.2 per cent reported in the third quarter.
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“We expect collections to improve in next 2-3 months,” a company statement said.
The company’s collections which took a hit after demonetisation deteriorated further in February ahead of elections in Uttar Pradesh and Maharashtra.
“Given the fact that elections were in its last leg, the intensity of the campaign for loan waivers had come down,” the company’s managing director MR Rao said.
Meanwhile, shares of the company recovered from day's low and were trading 1.6 per cent higher at Rs.815 in the late afternoon trade on Tuesday. The stock touched its lowest price band at 721.95 in the early morning trade at the Bombay Stock Exchange (BSE).
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