Poonawalla Fincorp posts highest-ever quarterly PAT of ₹265 crore in Q3

Posted on by

Poonawalla Fincorp posted its highest ever quarterly PAT of ₹265 crore in Q3 FY24, an increase of 76 per cent on year and 15 per cent on quarter, led by record disbursements.

Return on Assets (RoA) stood at 5.3 per cent, up 84 bps y-o-y and 34 bps q-o-q. Net Interest Margin (NIM) was at 11.02 per cent, an improvement of 33 bps on year.

Disbursements for the quarter were at ₹8,731 crore, up 159 per cent on year and 12 per cent on quarter. The lender’s AUM rose 58 per cent y-o-y and 9 per cent q-o-q to ₹21,946 crore as of December 2023, of which MSME loans accounted for 42 per cent, LAP for 17 per cent, personal and consumer loans for 16 per cent, and pre-owned-cars for 14 per cent.

Robust distribution ecosystem

“Our recently launched mobile application has gained significant traction thereby helping us build a robust distribution ecosystem,” said MD Abhay Bhutada, adding that the NBFC has also completed its technology transformation.

The company said it is operating at the prime end of the unsecured personal loan segment, in the over ₹1 lakh ticket size segment, and is thus “not susceptible to low ticket risk”.

Currently, unsecured loans comprise 48 per cent of the loan portfolio which the lender plans to grow to 50 per cent, in-line with the shifting consumer demand, existing gap in addressing customer requirements, high bureau-tested customer base and higher risk adjusted returns.

Short term loans of upto 12 months, which currently comprise 22 per cent of the portfolio, are expected to sustain at 20-25 per cent, whereas medium and long-term loans are seen at around 75-80 per cent.

Gross NPA ratio of the NBFC improved by 36 bps on year and 3 bps on quarter to a record low of 1.33 per cent. Net NPA ratio, at 0.70 per cent, too was 19 bps better yoy and 2 bps sequentially.