IndiaBulls Financial Services – Large Write Off

IBFSL’s 3QFY10 earnings of Rs640mn were 40-45% below est. owing to a write-off of ~Rs610mn in one large a/c. However, excluding w/o, earnings were 8-9% below estimates, owing to higher–than-estimated repayments, despite in-line disbursement growth.

However, excluding w/o, earnings were 8-9% below estimates, owing to higher–than-estimated repayments, despite in-line disbursement growth. But, for this, all other parameters have rebounded, with disbursements of Rs21bn vs. ~Rs16bn in 2Q; loan growth up 6% qoq; margins holding up; headline gross & net NPLs down 2% qoq

IBFSL has settled with one large a/c, which had been in the news the during Oct- Dec 09 period. Of the Rs2.9bn o/s, Rs2.3bn is the settlement amount between parties.