Bharat Financial gains after completing securitization transaction

Bharat Financial Inclusion rose 0.82% to Rs 1,038.50 at 10:21 IST on BSE after company said that it has completed the sixth securitization transaction of Rs 289.14 crore in FY19.

The announcement was made after market hours yesterday, 29 November 2018.

Meanwhile, the S&P BSE Sensex was up 158.51 points, or 0.44% to 36,318.72

On the BSE, 21,000 shares were traded in the counter so far, compared with average daily volumes of 2.27 lakh shares in the past two weeks. The stock had hit a high of Rs 1,058.95 and a low of Rs 1,032 so far during the day.

Bharat Financial Inclusion completed the sixth securitization transaction of Rs 289.14 crore in FY19. With this transaction, the company has completed six securitization transactions worth Rs 2842.17 crore in FY19. The entire pool qualifies for Priority Sector treatment as per the Reserve Bank of India's Priority Sector lending guidelines. The pool has been rated AA (SO) by a leading rating agency, signifying a high degree of safety regarding timely servicing of financial obligations'. Such instruments carry very low credit risk.

Bharat Financial Inclusion said that the company has assigned a pool of receivables of an aggregate value of Rs 827.76 crore to one of the largest private sector banks on a Direct Assignment basis as per the guidelines prescribed by the Reserve Bank of India. This is the third Direct Assignment transaction in FY19. With this transaction, the company has completed Direct Assignment transactions worth Rs 2181.75 crore in FY 19. The announcement was made after market hours on 28 November 2018.

Bharat Financial Inclusion's net profit rose 72.74% to Rs 232.92 crore on 57.76% rise in total income to Rs 760.13 crore in Q2 September 2018 over Q2 September 2017.

Bharat Financial Inclusion is among the largest microfinance companies in India.

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