IKF Finance announced its FY24 results

06 September 2024

• Financial Performance: IKF Finance’s AUM surpassed the ₹3,775 Cr mark in FY24, reflecting an impressive 53.97% (year-over-year) growth driven by enhanced customer trust and an expanded product portfolio. Disbursements rose by 59.85% to ₹2,676 Cr, up from ₹1,674 Cr in FY23. The company’s revenue increased by 54.8% to ₹586 Cr, and net profit improved significantly, reaching ₹76.97 Cr. Maintaining strong asset quality, the company reported Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) at 2.35% and 1.80%, respectively, demonstrating effective risk management.  IKF’s net worth reached ₹881 Cr, with a capital-to-risk (Weighted) Assets Ratio (CRAR) of 26.51%, underscoring its strong financial position and capital adequacy to support future growth.

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• Operational Developments: IKF Finance offers a broad range of credit solutions, including loans for commercial vehicles, cars, MUVs, three-wheelers, tractors, construction equipment, MSMEs, and home loans, enabling the company to serve underserved customer segments. The company has expanded its distribution network to 165 branches across nine states, with a strong presence in Southern India and new expansions in Western and Central India. Its home finance subsidiary, IKF Home Finance, established in FY16, has shown remarkable growth, achieving a 61.10% CAGR in AUM and surpassing the ₹1,000 Cr mark in FY24. Additionally, IKF has advanced its technological capabilities by migrating its Loan Origination System (LOS) infrastructure to a cloud platform, enhancing scalability, cost-efficiency, and data security while supporting AI and machine learning integrations to further improve operations and customer experience.

• Strategic Outlook: IKF Finance is well-positioned to capitalize on opportunities in the financial services sector, particularly in vehicle financing and MSME loans. The company’s strategic emphasis on digital transformation, robust risk management, and expansion into new markets are key drivers for sustained growth