As advances continue to grow at robust pace, NBFC stock reports multi-fold jump in Q2 profit
[ad_1]
![stock market](https://resize.indiatvnews.com/en/centered/newbucket/1200_675/2023/11/mixcollage-08-nov-2023-11-01-pm-6885-1699464710.jpg)
Banksโ advances to Non-Banking Financial Companies (NBFCs) in the second quarter continued to grow at a robust pace. The credit exposure of banks to NBFCs stood at Rs 14.2 lakh crore in the September 2023 quarter, indicating a 26.3 per cent year-on-year growth.
This expansion is indicative of the robust progress observed in NBFCs during the post-pandemic period. Furthermore, the proportion of NBFC exposure in relation to aggregate credit has risen from 8.9 per cent in the September 2022 quarter to 9.4 per cent in September 2023.
As the credit extended by banks to NBFCs exhibited a consistent upward trend over the last five years, a leading financial services layer UY Fincorp has announced a massive jump of 90 per cent in its net sales in the second quarter of the current financial year. The same stood at Rs 29.10 crore, up from Rs 15.28 crore in the September 2022 quarter.
The quarterly net profit came in at Rs 51.17 crore in the quarter. This represents a growth of more than 1500 per cent from Rs 3.05 crore in the corresponding quarter in the previous financial year. EBITDA also rose sharply to Rs 69.02 crore.
Meanwhile, UY Fincorp shares on Wednesday closed in green with gains of three per cent at Rs 25.85 on BSE, according to exchange data. The stock has shown robust performance, gaining 112.93 per cent in the past year.ย
NBFCs are regulated by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). They form a major part of the financial lending sector and greatly contribute to the economy.
Over the period, NBFCs have emerged as a vital source of credit for micro, small, and medium enterprises (MSMEs).
[ad_2]
Source link