JM Financial Q2 Results: Net profit rises 4.3% YoY to Rs 238 cr on drop in commission income

However, it did not deter the company from reporting robust loan growth.

The non-banking finance company reported a 4.3% year-on-year rise in the net profit at Rs 238 crore. Fees and commission income, earned generally from share sales among others, dipped nearly 34% to Rs 133 crore.

“Equity capital markets have been volatile due to geopolitical developments and increase in rates,” said Vishal Kampani, non-executive vice chairman, JM Financial. “On the other hand, credit growth has witnessed an upward trajectory.”

“Last financial year we had strong earnings from IPO financing activity, which has substantially reduced this financial year due to regulatory changes both at RBI and Sebi,” he said in a release.

The non-bank entity expanded loans 32.5% to Rs 14,670 crore aided by retail mortgages and credit given to last mile lenders.

FI (Financial Institution) Financing group, a bespoke lending arm delivered stupendous loan growth. Under this segment loans are given to small time lenders, whose book size was at Rs 995 crore in the quarter compared with Rs 103 crore in the corresponding quarter a year ago.

“Being an integrated and well capitalised financial services player, we are in a position of strength to leverage growth opportunities,” said Kampani.

The loan growth came at a cost of a rise in bad loans. The share of net non-performing assets to the loan book jumped to 2.44% from 1.38% a year earlier.