JM Financial Q2 net income rises slightly to Rs 180 cr; bad loans spike

JM Financial on Monday reported a marginal 3.20 per cent increase in its net income on a consolidated basis in the September quarter at Rs 180 crore as the company saw its revenue falling and bad loans rising.

Total income fell 9.53 per cent to Rs 877.13 crore in the reporting quarter from Rs 969.49 crore in the year-ago period, the company said in a statement.

JM Financial's loan book rose to Rs 14,670 crore from Rs 11,072 crore, but the asset quality worsened with gross NPAs climbing to 3.85 per cent from 2.32 per cent in September 2021 and from 3.52 per cent in June 2022. Net NPAs nearly doubled to 2.44 per cent from 1.38 per cent year on year and from 2.31 per cent sequentially.

The company said 0.37 per cent of assets are still under the Covid protection cover, down from 0.87 per cent on-year and 0.45 per cent on-quarter.

Of the total loan book, the wholesale mortgage stood at Rs 7,321 crore, up 11.3 per cent, and retail mortgage jumped 62.8 per cent to Rs 1,392 crore.

Vishal Kampani, non-executive vice-chairman, said the equity capital market was volatile due to geopolitical developments and increase in interest rates. On the other hand, credit growth saw an upward trajectory and the increase in the loan book will reflect in the earnings in the next quarters.

He said, of the total net income, the investment banking arm brought in Rs 97.62 crore which was up 49.63 per cent; mortgage lending (Rs 35.49 crore, up 17.24 per cent); alternative & distressed credit (Rs 9.88 crore, down 58.22 per cent); platform AWS which is the asset management, wealth management and securities business (Rs 7.62 crore, down 77.42 per cent); others chipped in with Rs 29.40 crore, which was 36.55 per cent more than the year-ago period.