BENGALURU (Reuters) - India's Piramal Enterprises posted a profit for the fourth quarter on Wednesday as it reversed some funds set aside for its investments in Alternative Investment Funds (AIF).

The non-banking financial company reported a consolidated profit of 1.37 billion rupees ($16.41 million) for the quarter ended March 31, aided by a one-time gain of 15.17 billion rupees due to the reversal of AIF provisions.

The company had posted a loss of 23.78 billion rupees in the December quarter when it had set aside 35.40 billion rupees for such provisions.

In December, the Reserve Bank of India (RBI) asked lenders to stay away from investing in AIFs that have investments in existing and recent borrowers. The central bank also urged lenders to liquidate their investments in such AIFs or to make 100% provisions on such investments.

However, the RBI eased these rules in March, allowing lenders to reverse some provisions made for AIF investments.

Piramal said it expects gains of 12 billion rupees in fiscal year 2025 and five billion rupees in fiscal 2026 from AIF investments.

($1 = 83.4690 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Sonia Cheema)