Ahead of IPO, Hero FinCorp writes off bad loans worth around Rs 1,200 crore
The Abhimanyu Munjal-led Hero FinCorp has written off bad loans worth close to Rs 1,200 crore, representing almost 3.4 percent of its loan book, as the lender looks to clean up its financial records in the runup to its public market debut.
For the nine months ended December 31, 2023, the lender recorded ‘impairment on financial instruments’ of Rs 1,214.71 crore, coming primarily from bad loans written off, filings by the company show. This compares to impairments of Rs 1,204.79 crore recorded in the full financial year 2022-23, the filings show.
In a recent report, credit rating agency ICRA noted that while Hero FinCorp’s asset quality profile has shown an improvement in the nine-month period ended December 31, a significant part of it came from high write-offs undertaken by the lender.
Despite the high write-offs, the company registered a 168 percent surge in profit after tax, moving up from Rs 461 crore in April-December 2022 to Rs 736 crore in the corresponding months of 2023.
