Fusion Finance narrows losses, expects to be profitable in H2

Kolkata: Warburg Pincus-backed Fusion Finance is expecting to turn profitable in the second half of this financial year, after suffering net losses for the sixth quarter in a row, said its managing director and chief executive Sanjay Garwali.

With the turnaround in sight, the lender has decided to call the second tranche of ₹400 crore from investors who subscribed to its ₹800 crore partly paid rights issue.

The non-banking financial company-microfinance institution is expecting further improvement in asset quality and reduction in credit cost in the next quarters with the improvement in collection efficiencies, which reflect restoration of credit discipline after a year of intense delinquency trends.

“We are targeting to become profitable in the third quarter. The second half of the fiscal overall will be definitely profitable,” Garwali told ET.

Fusion Finance booked a net loss of ₹22 crore for July-September against ₹92 crore in the preceding quarter and ₹305 crore in the year-ago period.

The lender also aims to increase monthly loan disbursal to ₹550-600 crore from January onwards, as compared to ₹450 crore a month at present, which would put it on the growth path on a net basis.