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Business News/ Brand Stories / Poonawalla Fincorp Achieves Significant Milestone of GNPA Below 1% and NNPA Below 0.5% as on 31st May 2024
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Poonawalla Fincorp Achieves Significant Milestone of GNPA Below 1% and NNPA Below 0.5% as on 31st May 2024

The Company’s identity “P” stands for Passion, Principles, Purpose, People and Possibilities.

Abhay Bhutada - Managing Director, Poonawalla Fincorp Premium
Abhay Bhutada - Managing Director, Poonawalla Fincorp

Pune, Maharashtra, India – Business Wire India

Poonawalla Fincorp Limited, a non-deposit taking systemically important NBFC focusing on consumer and MSME finance, has achieved a significant milestone of Gross NPA below 1% and Net NPA below 0.5% as on31st May 2024. It continued to register robust financial performance, demonstrating strong growth in AUM, profitability, and superior asset quality.

Management Commentary:

“Under the dynamic leadership of our Managing Director, Mr. Abhay Bhutada, the company has successfully changed its trajectory to emerge as a leader in the lending space with the biggest transformation over the last 3 years witnessed in the NBFC space, with AUM crossing Rs. 25,000 crore and PAT crossing Rs.1,000 crore in FY2024. At the time of acquisition in 2021, as per management stated Vision 2025, the target was to achieve Net NPA below 1% in 2025, however, the company achieved Gross NPA below 1% and Net NPA below 0.5% as at 31stMay 2024. The company has been able to give stellar results, with pristine asset quality due to its strategic business model, robust risk & governance practices, and improvement in collection efficiency."

Biggest & Successful Transformation in NBFC sector at a glance

Parameters (Standalone)Dec-20 (Legacy Magma)
(Pre-Acquisition)
Mar-24 (Poonawalla Fincorp)
(Post-Acquisition)
Assets Under Management (AUM)Rs. 11,631 croreRs. 25,003 crore
Cost of Borrowing (%)9.64%8.17%
GS3/Gross NPA (%)8.23%1.16% *
NS3/Net NPA (%)5.35%0.59% *
Return on Assets (%)0.04%5.73%
AUM per EmployeeRs. 2.14 croreRs. 11 crore
PBT Per EmployeeRs. 0.12 lacsRs. 68 lacs
CollectionCashDigital
Branches255102
Lending Methodology Physical Digital
New to CreditYesNo
Data Driven LendingNoYes
Credit RatingAA- (CARE)AAA (CRISIL & CARE)
Direct & Digital Business (%) ~10% 81%
Digital First Approach No Yes

 
 

*With combined efforts of business growth, prudent credit policies & improved collection efficiency, the GNPA and NNPA numbers have further improved toless than 1% and 0.5% respectively, as of 31st May 2024.

Long Term Guidance on Financial Metrics (achieved across all parameters)

The company’s performance on the key financial metrics as against its long-term guidance is as under:

S/N.MetricsRangeActual (Mar’24)
1.AUM Growth35-40%55%
2.Profit Growth30-35%84%
3.GNPA1.3-1.8%1.16% *
4.NNPA0.5-0.9%0.59% *
5.Return on Assets4-4.5%5.73%

*With combined efforts of business growth, prudent credit policies & improved collection efficiency, the GNPA and NNPA numbers have further improved to less than 1% and 0.5% respectively, as of 31st May 2024.

About Poonawalla Fincorp Limited

Poonawalla Fincorp Limited (“the Company") is a Cyrus Poonawalla Group promoted non-deposit taking systemically important non-banking finance company (ND-SI-NBFC), registered with the Reserve Bank of India (RBI). The Company started operations nearly three decades back and is listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).

The Company’s identity “P" stands for Passion, Principles, Purpose, People and Possibilities. The Company has widespread coverage across 19 states. The Company has a standalone AUM of Rs.25,003 crore as on March 31, 2024, and employs around 2300 people. The Company’s offerings include pre-owned car finance, personal loans, loanto professionals, business loans, loan against property, co-branded credit card, machinery loans, medical equipment loans and consumer loans.

For more information, please log on to: www.poonawallafincorp.com

Media Contact Details

Poonawalla Fincorp Limited, corporatecommunications@poonawallafincorp.com

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.

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Published: 03 Jun 2024, 12:02 PM IST
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