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Bharat Financial reports Rs 235 cr Q4 loss

Huge increase in provisions and write-offs at Rs 335 cr; firm has posted Rs 84 cr profit a year ago

Sharath Chowdary  |  Hyderabad 

Bharat Financial reports Rs 235 cr Q4 loss

Hyderabad-based lender has reported a net loss of Rs 235 crore in the January-March quarter of the previous financial year, while it earned a net profit of Rs 84.47 crore in the same quarter a year ago.

The loss is mainly due to the drastic increase in the provisions and write-offs at Rs 334.5 crore in the quarter under review when compared to Rs 13.9 crore in the corresponding quarter previous financial year.

The company's net profit declined 4.4 per cent to Rs 289.69 crore in the financial year 2016-17 from Rs 302.98 crore during the previous fiscal period, again due to a spike in provisions and write-offs.

However, the overall revenues of the company surged up 10.5 per cent to Rs 409.3 crore in January-March quarter this financial year as against 370.3 crore during the corresponding quarter previous fiscal.

Bharat Financial, formerly SKS Microfinance, has witnessed 30.8 per cent growth in business at Rs 1,727.9 crore in financial year 2016-17 over Rs 1,320.67 crore during the previous fiscal.

To explore strategic options

The board of directors of Limited today authorised the CEO and managing director of the company to explore the complete spectrum of strategic options including merger, reverse merger, bringing on board a strategic investor and making a strategic acquisition in order to pursue growth opportunities.