Poonawalla Fincorp announces improved asset quality, profits up 141% y-oy

Pune: The consumer and MSME lender Poonawalla Fincorp has announced that its asset quality has improved both annually and sequentially in Q1FY23, while also reporting increased assets under management, disbursements, as well as profits for the quarter, compared to the same quarter in the previous fiscal.

At the end of June 30, 2022, the company’s AUM (assets under management) stood at Rs 17,660 crores, up by around 22% year-on-year, while its profits grew by a significant 141% year-on-year, from Rs 65 crores, to Rs 141 crores. The company’s net interest margin stood at 9.5%, up by 155 basis points.

As for its asset quality, the company announced that its gross Stage 3 accounts declined sequentially from 2.66% in Q4FY22, to 2.19% in the June quarter. The same in Q1FY22 stood at 5.38%. Poonawalla Fincorp’s net Stage 3 assets also declined sequentially and annually, from 1.11% and 2.71% respectively, to 0.95% in Q1 FY23.

“We have had a great start to this financial year. Our execution excellence has ensured that this quarter (Q1FY23) has been better than the last quarter (Q4FY22). Strong disbursements, on the back of excellent organic disbursement growth, is a validation of our business model,” said Abhay Bhutada, managing director of Poonawalla Fincorp.


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