“Our profit after tax has been compounding at about 39-40% for the last five years, which is basically faster than the growth of the loan book of 25%. So, we believe that trend should continue with coming year as well, which means, profit should outpace the growth of the loan book of 25%," said V Vaidyanathan, Executive Chairman, Capital First.
“We feel extremely comfortable guiding for 25% growth on the loan book,” he said.
Capital First posted a healthy set of earnings in Q4 but higher provisions remain. Gross non-performing assets (NPA) too increased marginally.