Net interest income (NII) improved by 47.46% to Rs 119.2 crore in Q2 FY23 from Rs 80.8 crore in Q2 FY22.

Total income rose by 46.73% in the second quarter to Rs 230 crore from Rs 156.8 crore recorded in the same period last year.

Operating Expense increased by 104.80% YoY to Rs 41.6 crore during the period under review, primarily due to expense incurred on strengthening and expansion of branches, centers, employees & partnership including Fintech and also due to normalization of business from Q3 2022.

Profit before tax in Q2 FY23 stood at Rs 65 crore, up by 26.98% from Rs 52 crore in Q2 FY22.

The company said that it had witnessed a healthy growth in business activities across the segment which it served during the quarter. The same was reflected in disbursement which stood at Rs 2,262 crore during the quarter ended 30th September 2022 as compared to Rs 1,477 crore during the corresponding period, up 53.17% YoY.

Assets under management (AUM) increased by 30.13% YoY to Rs 7138 crore as on 30 September 2022. Of the total AUM, maximum growth was recorded in the SME loans category (up 33.40% YoY), followed by 2-Wheeler loans category (up 30.16% YoY), Micro-Enterprise loans category (up 24.07% YoY) and Commercial Vehicle loans category (up 19.91% YoY). As on 30 September 2022, 40.96% of the total underlying assets was through various NBFCs.

Capital Adequacy Ratio (including tier-II capital) as of 30 September 2022 stood at 24.14% and the Tier-l capital stood at 21.24%.

The company said that the portfolio quality remained stable and strong despite of the prolonged ongoing crisis followed by the unprecedented pandemic situation at 2.26% gross stage-3 assets and 1.60% net stage-3 assets of AUM as compared to 2.27% gross stage-3 assets and 1.63% net stage-3 assets of AUM as on 30 June 2022.

The company continues to carry buffer provision (COVID provision) as on 30 September 2022 of 0.37% of the total on book assets.

Kamlesh Gandhi - founder, chairman & managing director, MAS Financial, said: "Our conviction to grow at a consistent CAGR of 20-25% is based on the strong enablers' namely high capital adequacy, excellent asset quality accompanied by strong liability management and the niche expertise to serve the huge MSME market. The same was very aptly demonstrated in the working of this quarter and are confident for the same going forward.”

MAS Financial Services is a non-deposit accepting NBFC. While the company initially provided consumer durable financing, it currently provides corporate loans to NBFC-MFIs and other NBFCs engaged in retail finance, small ticket business loans, small commercial vehicle loans, two-wheeler loans and machinery finance. The company is predominantly present in Gujarat, Rajasthan and Maharashtra. As on 30 September 2022, it had a presence in seven states and the Delhi National Capital Region (Delhi/NCR) through 147 branches.