Merger Looms As High Provisions Turn Bharat Financial Unprofitable

Thursday, May 4, 2017

Bharat Financial Inclusion Ltd. is considering a merger even as India’s fourth largest microfinance lender reported losses in the March-ended quarter on a rise in provisions for bad loans after demonetisation.

The company reported a loss of Rs 234.9 crore compared to a profit of Rs 84.5 crore in the same quarter last year, according to its stock exchange filing.

Provisioning and write-offs for bad debt went up more than 90 times to Rs 334 crore sequentially. The company had warned of high provisioning after demonetisation in an analyst call in March.

Source: Bloomberg / The Quint (link opens in a new window)