Sign In

Delhi News Daily

  • Home
  • Fashion
  • Business
  • World News
  • Technology
  • Sports
  • Politics
  • Lifestyle
  • Entertainment
Reading: Indostar banks on improving asset quality, branch expansion for growth – Delhi News Daily
Share

Delhi News Daily

Font ResizerAa
Search
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Delhi News Daily > Blog > Business > Indostar banks on improving asset quality, branch expansion for growth – Delhi News Daily
Business

Indostar banks on improving asset quality, branch expansion for growth – Delhi News Daily

delhinewsdaily
Last updated: June 26, 2025 8:08 pm
delhinewsdaily
Share
SHARE


The stock of Indostar Capital has gained 21% since its March quarter result declared on April 29 compared with nearly 4.5% increase in the ET NBFC index. The mid-tier nonbanking financial company (NBFC) reported strong growth in net interest income and improved asset quality amid tightened lending policies. The company sold stressed loans in a transaction with an asset reconstruction company (ARC) during the quarter which is expected to keep asset quality high in FY26 as well.

Indostar’s cost-income ratio has historically been higher in the vicinity of 70%. It has undertaken a cost optimisation drive to rationalise operating costs. The company aims to bring the cost-income ratio down to around 50% in the coming quarters.

Over the past two years, the company has been focusing on expanding its reach. It added over 150 branches during the period to take the total count to 587 at the end of March 2025. It also augmented the workforce significantly by 1764 to 5,763. The management expects these initiatives will help in achieving 12-15% growth in assets under management (AUM). In FY25, its AUM grew by 26.1% to Rs11,053 crore.

The retail share in the AUM reached 99% in FY25 from 26% in FY18. It undertakes commercial vehicle financing, small and medium enterprises (SME) lending, and loan against property (LAP).

The company plans to replace high cost debt worth Rs 800 crore attracting an interest rate of 12% with fresh borrowings at a coupon rate of 10% in the June 2025 quarter. This is expected to reduce the debt servicing cost. The company spent over half of the revenue from operations on interest payment in each of the two years to FY25.

ET logo

Live Events


Indostar’s net profit grew by 2.6% to Rs36.2 crore in the March 2025 quarter. Net interest income (NII) at Rs181 crore fell year-on-year by 22% due a high base of one-time gain in the previous year’s comparable quarter. Disbursements at Rs1,535 crore were 13% lower from the year ago as the company implemented tighter lending policies. On a standalone basis, gross non-performing assets (NPA) fell to 4.5% from 5% by similar comparison.Motilal Oswal expects 94% growth in net profit of Indostar between FY25 and FY27. The brokerage has a buy rating on the stock with a target price of Rs360. On Thursday, it was last traded at Rs352.5 on the BSE.



Source link

Share This Article
Twitter Email Copy Link Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article ‘Investigate Zohran Mamdani if he concealed…’ Rep Andy Ogles writes to DOJ, says his rap lyrics were problematic – Times of India – Delhi News Daily
Next Article News18 ‘No Competition With Puri’: Mamata Says Rath Yatra In Bengal Coastal Town ‘Nothing To Do With Politics’ – Delhi News Daily
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • World’s first rare blood group found in Bangalore woman, marking a historic medical discovery | World News – Times of India – Delhi News Daily
  • At least seven killed in Guatemala funeral attack | World News – Times of India – Delhi News Daily
  • UAE Golden Visa for farmers? How two Thai women became the first receiepients for growing dates abroad | World News – Times of India – Delhi News Daily
  • Tsunami disrupts marine life: Hundreds of sea lions flee powerful waves after Russia earthquake – Watch – Times of India – Delhi News Daily
  • Thailand factory explosion: Deadly blast reduces building to rubble; 9 dead, 4 injured | World News – Times of India – Delhi News Daily

Recent Comments

No comments to show.

You Might Also Like

Business

Crypto sector breaches $4 trillion in market value during pivotal week – Delhi News Daily

The crypto sector's market value hit $4 trillion on Friday, according to CoinGecko, marking a milestone that reflects its shift…

3 Min Read
Business

Hitachi Energy India shares surged 2% after winning 765 kV transformer order from Power Grid Corp – Delhi News Daily

Hitachi Energy India shares surged 2.3% to their intraday high of Rs 19,849.10 on the BSE on Friday after the…

3 Min Read
Business

G7 leaders want to contain the Israel-Iran conflict, as Trump calls for talks between the countries – Delhi News Daily

KANANASKIS, Alberta: The Group of Seven summit began in Canada on Monday with world leaders scrambling to contain the escalating…

8 Min Read
Business

Higher crude oil prices a net positive for upstream cos, possibly for OMCs too: Kotak Equities – Delhi News Daily

The recent rise in crude oil prices may prove beneficial not only for upstream oil companies but also for oil…

3 Min Read

Delhi News Daily

© Delhi News Daily Network.

Incognito Web Technologies

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?