Poonawalla Fincorp Limited announced in a stock exchange filing that it achieved a significant milestone with Gross NPA (GNPA) below 1% and Net NPA (NNPA) below 0.5% as of May 31, 2024. The company continued to demonstrate robust financial performance, showing strong growth in AUM, profitability, and superior asset quality.
As of March 2024, Poonawalla Fincorp Limited’s Assets Under Management (AUM) were ₹25,003 crore, which grew from ₹11,631 crore in December 2020, pre-acquisition of Magma Fincorp Ltd. The company reported a return on assets of 5.73%, the cost of borrowing of 8.17%, it has 102 branches, and its credit rating is AAA (CRISIL & CARE).
In March 2024, the Gross NPA was 1.16%, down from 8.23% in December 2020, and the Net NPA was 0.59%, down from 5.35% in December 2020.
The company stated its performance on key financial metrics compared to its long-term guidance:
| Metrics | Range | Actual Metrics in March 2024 |
| AUM Growth | 35-40% | 55% |
| Profit Growth | 30-35% | 84% |
| GNPA | 1.3-1.8% | 1.16% |
| NNPA | 0.5-0.9% | 0.59% |
| Return on Assets | 4-4.5% | 5.73% |
Poonawalla Fincorp Limited stated that through collaborative efforts in business expansion, cautious credit policies, and enhanced collection efficiency, both GNPA and NNPA figures have further decreased to below 1% and 0.5%, respectively, as of May 31, 2024.
Meanwhile, the company recently partnered with IndusInd Bank and launched the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card.
Poonawalla Fincorp Limited is a non-deposit-taking, systemically important non-banking finance company (ND-SI-NBFC) under the Cyrus Poonawalla group. It is registered with the Reserve Bank of India (RBI). The company provides a range of financial services, including personal loans, loans for professionals, pre-owned car finance, loans against property, business loans, machinery loans, co-branded credit cards, consumer loans and medical equipment loans.
On June 3, 2024, the share price of Poonawalla Fincorp Ltd opened at ₹469.00, touching the day’s high at ₹469.00, as of 10:17 AM on the NSE.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Jun 3, 2024, 1:34 PM IST
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