LIC-backed Paisalo Digital declares 10% dividend

LIC-backed NBFC reports record growth in customers and assets

Paisalo Digital, a non-banking financial company (NBFC) backed by Life Insurance Corporation of India (LIC), has announced its financial results for the fourth quarter of FY2024-25, delivering robust growth across key performance indicators.

Net profit surged 25% year-on-year to ₹45 crore in Q4 FY25, compared to ₹36 crore in the same quarter last year.

Net Interest Income (NII) climbed 41% YoY to ₹96 crore for the quarter, while total interest income rose to ₹178.09 crore from ₹147.73 crore a year ago.

Assets Under Management (AUM) reached an all-time high of ₹5,232.8 crore, marking a 14.1% increase over ₹4,586 crore in Q4 FY24.

Asset quality showed some deterioration, with Gross NPA (GNPA) rising to 0.99% and Net NPA (NNPA) to 0.76% in Q4 FY25, compared to 0.21% and 0.02% respectively a year earlier. The company stated it is enhancing its debt management systems to improve collections.

Customer base more than doubled, as Paisalo added 1.52 million new customers in Q4, taking its total count to 9.45 million by the end of FY25, up from 4.29 million last year.

Expanded presence across India, growing its network to 3,565 touchpoints in 22 states, including 351 branches, 1,900 distribution points, and 1,314 customer service points (CSPs), up from 2,455 touchpoints last year.

Dividend Declared

The company’s board has recommended a final dividend of 10% (₹0.10 per equity share of ₹1 face value) for FY25, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

As of March 2025, LIC holds a 1.17% stake in Paisalo Digital, owning 77,59,511 shares.

Disclaimer: This report is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.