India's Piramal Enterprises posts Q4 profit on reversal of AIF provisions

Piramal Enterprises

08/05/2024 13:57

BENGALURU, May 8 (Reuters) -    India's Piramal
Enterprises posted a profit for the fourth quarter on Wednesday
as it reversed some funds set aside for its investments in
Alternative Investment Funds (AIF).
    The non-banking financial company reported a consolidated
profit of 1.37 billion rupees ($16.41 million) for the quarter
ended March 31, aided by a one-time gain of 15.17 billion rupees
due to the reversal of AIF provisions. 
   The company had posted a loss of 23.78 billion rupees in the
December quarter when it had set aside 35.40 billion rupees for
such provisions.
    In December, the Reserve Bank of India (RBI) asked lenders
to stay away from investing in AIFs that have investments in
existing and recent borrowers. The central bank also urged
lenders to liquidate their investments in such AIFs or to make
100% provisions on such investments.
     However, the RBI eased these rules in March, allowing
lenders to reverse some provisions made for AIF investments.
     Piramal said it expects gains of 12 billion rupees in
fiscal year 2025 and five billion rupees in fiscal 2026 from AIF
investments. 


($1 = 83.4690 Indian rupees)

 (Reporting by Nishit Navin in Bengaluru; Editing by Sonia
Cheema)
 ((Nishit.Navin@thomsonreuters.com;))