Piramal Swallow Board (PSB) is expected to announce a loan write-off of Rs 42,000 crore (approximately $550 million) in its first half of FY25 (January-June 2024). This significant provision is likely to impact the company’s financial performance in the first half of the fiscal year. The exact reasons behind the loan write-off are not specified, but it could be attributed to a combination of factors, including changes in the company’s business model, market conditions, or changes in regulatory requirements.
The write-off is expected to lead to a deterioration in PSB’s financial performance, potentially impacting its profitability and financial ratios. Investors may be cautious in their approach to the stock, given the magnitude of the provision. On the other hand, the write-off could also create opportunities for investors who are willing to take on risk, as it may lead to a decline in the stock price, making it more attractive for bargain hunters. The exact impact of the loan write-off on PSB’s financials will be clearer once the company releases its half-yearly results.