Merger Looms As High Provisions Turn Bharat Financial Unprofitable
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.