• Growth and return targets: IIFL Finance expects consolidated AUM growth of around 25% for the year, while aiming for an ROA of 3.1% to 3.5% and an ROE of 18% to 20% in the short to medium term.
• Asset quality improvement: Gross NPA improved to 1.6% and Net NPA declined to 0.8%, alongside a provision coverage ratio above 90% and opex-to-AUM dropping to 3.1%.
• Borrowing cost outlook: Recent rating upgrades from Fitch (BB- stable) and Moody's (Ba3) are projected to lower steady-state borrowing costs by 40 to 75 basis points, aided by overseas funding access such as its recent $800 million social bond issuance.
• Capital raise plans: Following shareholder approval on July 24, the company is evaluating fresh equity fundraise options and assessing potential value unlocking or a separate listing for its ₹43,000 crore housing finance subsidiary.