Kolkata: Microfinance firm Fusion Finance reported its fourth quarterly loss in a row because of the ongoing extreme asset high quality stress that the sector is affected by.
The lender’s web loss stood at Rs 165 crore for the fourth quarter of FY25, as in contrast with a web revenue of Rs 133 crore within the year-ago interval, owing to increased provisions to cowl unhealthy loans. It put aside Rs 255 crore in the course of the quarter as in contrast with Rs 119 crore earlier.
Pre-provision working revenue for the quarter underneath assessment stood 69% decrease at Rs 90 crore towards Rs 291 crore within the year-ago interval.Internet curiosity margin was at 8.57% as in contrast with 11.59% over the identical interval. Its curiosity revenue at Rs 4,449 crore was 22% decrease year-on-year, according to squeezed enterprise quantity.
Fusion had reported a web lack of Rs 36 crore within the first quarter, Rs 305 crore within the second quarter and Rs 719 crore within the third quarter of FY25. Provision was the very best in the course of the third quarter at Rs 572 crore.
Consequently, Fusion’s annual web loss stood at Rs 1,225 crore as in contrast with Rs 505 crore web revenue within the previous fiscal.The corporate breached numerous monetary covenants in respect of borrowings amounting to Rs 4,763 crore as of March 31, 2025. Due to this fact, these borrowings change into repayable on demand. The corporate has obtained extension from its lenders for these breaches for borrowings of Rs 4,080 crore. It’s in dialogue with the remaining lenders to acquire comparable extensions, the corporate administration stated in a regulatory submitting to the inventory exchanges.The corporate holds money and money equivalents and liquid belongings aggregating Rs 798 crore.
“The corporate stays dedicated to bettering restoration efforts on the area degree and is assured of attaining higher outcomes. Any subsequent recoveries will likely be recognised as revenue and credited to the assertion of revenue and loss within the interval of restoration,” managing director Devesh Sachdev stated.
The lender’s gross non-performing belongings ratio stood at 7.92% on the finish of March towards 2.89% a yr again. Gross NPA was at 12.6% on the finish of December 2024. The ratio got here down sequentially as a consequence of accelerated write-off of unhealthy loans to the tune of Rs 405 crore in the course of the quarter.
Fusion’s belongings underneath administration dipped 22% year-on-year to Rs 8,980 crore on the finish of FY25 from Rs 11,476 crore because it slowed disbursal to stop additional worsening of asset high quality.
Its capital adequacy ratio stood at 22.4%, nicely above the regulatory stipulation.
