Mumbai: Poonawalla Fincorp has grown its loans one and a half times in FY23 according to a business updated provided by the company to the stock exchanges.
According to the company's statement, Poonawalla Fincorp's total disbursements during Q4FY23 were highest ever at approximately Rs 6,370 crore, which is a 151% increase year-over-year (YoY) and an 89% increase quarter-over-quarter (QoQ) compared to disbursements of Rs 2,539 crore in Q4FY22 and Rs 3,369 crore in Q3FY23.
Vaccine maker Adar Poonawalla, had acquired Magma Fincorp in February 2021 as part of strategy to get into financial services. The new owners have rebranded the company and infused additional capital.
The company’s Direct Digital Program (DDP) played a significant role in this growth, contributing 81% of the total disbursements in Q4FY23 compared to 66% in Q3FY23, 54% in Q2FY23, 39% in Q1FY23, and 24% in Q4FY22. For the full year FY23, total disbursements grew by 109% YoY to approximately Rs 15,750 crore.
The assets under management (AUM) also witnessed an impressive growth of 37% YoY and 16% QoQ to approximately Rs 16,120 crore as on 31 March 2023, despite a sharp reduction in the discontinued loan book. The discontinued on-book reduced to approximately Rs 625 crore as on 31 March 2023.
Poonawalla Fincorp expects further improvement in asset quality, with Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) likely to fall below 1.55% and 0.85%, respectively, as on 31 March 2023. The company aims to maintain the NNPA below 1% in line with its Management Vision 2025, the statement said.
The company has also maintained liquidity of approximately Rs 3,000 crore as on 31 March 2023, ensuring it remains well-positioned to meet any unforeseen contingencies.
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