Bharat Financial Inclusion gains from cost cutting, guarded expansion strategy

A guarded expansion strategy, cost optimisation and reduction in cost of funds have been yielding results for Bharat Financial Inclusion.

The company, formerly known as SKS Microfinance, posted an increase of 87.3 per cent in net profit at ₹146 crore in the second quarter ended September 30, compared with ₹77.86 crore in the corresponding quarter of the previous financial year.

Bharat Financial, the second-largest MFI in the country with a gross loan portfolio of ₹9,046 crore, had registered 66 per cent growth in non-AP portfolio. Its growth continues to remain rural-focussed, whereas the industry has been tilting towards building loan portfolios in urban areas. Its growth was also slower than that of the industry in nine out of the top 10 States.

This assumes significance at a time when a section of analysts have been cautioning on the rapid pace of micro lending growth in the industry.



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