LIC Owned Small Cap NBFC Stock Jumps Over 10% On Strong Q4 Result, Final Dividend Announcement

Life Insurance Corporation (LIC) owned non-banking finance company (NBFC) Paisalo Digital Limited has announced its financial results for the fourth quarter and full financial year ending March 31, 2025. The company reported strong earnings growth and declared a final dividend for its shareholders.

LIC NBFC Final Dividend: Paisalo Dividend Updates

The Board of Directors has recommended a final dividend of 10%, amounting to Re 0.10 per fully paid equity share of face value Re 1 for the financial year ended March 31, 2025. This is subject to approval by the company's shareholders at the upcoming Annual General Meeting (AGM).

In a filing to the stock exchanges, the company stated, "Recommended the Final Dividend @10% on fully paid-up capital of the Company i.e. Re 0.10 per fully paid equity share of Re 1 each, for the financial year ended March 31, 2025."

Paisalo Q4 Results 2025 Highlights

Paisalo Digital has reported a solid performance for Q4 FY 2025. The company's standalone net profit grew by 25%, reaching Rs 45 crore, compared to Rs 36 crore during the same quarter last year.

The company's Net Interest Income (NII), which is the difference between the interest it earns from lending and what it pays on borrowings, rose to Rs 96 crore. This marks a 41% increase over the same period in the previous year.

Paisalo Digital's total interest income for the January-March 2025 quarter stood at Rs 178.09 crore. This is up from Rs 147.73 crore reported in the March 2024 quarter.

Paisalo Loan Quality Metrics

The company's Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) were reported at 0.99% and 0.76%, respectively, for the quarter ending March 2025. This is higher compared to 0.21% GNPA and 0.02% NNPA in the same quarter last year. The company mentioned that it is strengthening its debt recovery systems to manage credit risk more effectively.

Paisalo Record Asset Under Management (AUM)

Paisalo Digital achieved its highest-ever Asset Under Management (AUM) during the quarter, reaching Rs 5,232.8 crore. This is a 14.10% increase from Rs 4,586 crore reported in Q4 FY24.

The company also recorded its highest-ever customer addition in a single quarter, bringing in 1.52 million new customers during Q4 FY25. Over the full financial year, it added a record 5.16 million customers.

As of March 2025, the company's total customer base stood at 9.45 million, up from 4.29 million in March 2024 which is more than doubling its customer franchise in just one year.

The Board has also approved the issuance of non-convertible debt securities (NCDs) on a private placement basis, subject to the borrowing limits of Rs 9,000 crore, as approved by shareholders through a special resolution passed in August 2024.

SBI Investment in Paisalo Digital

Paisalo Digital announced that State Bank of India (SBI) has invested in its Commercial Papers (CPs). According to the company's disclosure, the Operations and Finance Committee of the Board of Directors approved the allotment of 600 Commercial Papers worth over Rs 29 crore to SBI on March 11, 2025.

LIC Shareholding in Paisalo Digital

As per the shareholding pattern disclosed for the December 2024 quarter, Life Insurance Corporation of India or LIC holds over 1% stake in Paisalo Digital.