Microfinance company Fusion Finance earned a net profit of Rs 86.5 crore for the second quarter against Rs 62.4 crore in the first quarter and a Rs 22.1 crore loss in the year-ago period.The lender managed to bring down the gross non-performing assets ratio to 1.6% at the end of September, improving about 301 basis points year-on-year, while it grew assets under management 14% to Rs 8007 crore.Fusion's net interest margin (NIM) improved to 12.5%, expanding 167 bps year-on-year.Its total income rose about 12% year-on-year at Rs 486 crore while pre-provision operating profit surged 40% at Rs 125 crore.Fusion expects faster business expansion going forwards.

"We expect growth momentum to improve in Q3 and remain committed to our medium-term AUM growth ambition of 20–25%," managing director Sanjay Garyali said.(You can now subscribe to our ETMarkets WhatsApp channel)