Poonawalla Fincorp Achieves Significant Milestone of GNPA Below 1% and NNPA Below 0.5% as on 31st May 2024
June 3, 2024
Pune, Maharashtra, India
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 31st May 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.”
| Parameters (Standalone) | Dec-20 (Legacy Magma) (Pre-Acquisition) |
Mar-24 (Poonawalla Fincorp) (Post-Acquisition) |
| Assets Under Management (AUM) | Rs. 11,631 crore | Rs. 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 Employee | Rs. 2.14 crore | Rs. 11 crore |
| PBT Per Employee | Rs. 0.12 lacs | Rs. 68 lacs |
| Collection | Cash | Digital |
| Branches | 255 | 102 |
| Lending Methodology | Physical | Digital |
| New to Credit | Yes | No |
| Data Driven Lending | No | Yes |
| Credit Rating | AA- (CARE) | AAA (CRISIL & CARE) |
| Direct & Digital Business (%) | ~10% | 81% |
| Digital First Approach | No | Yes |
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. | Metrics | Range | Actual (Mar’24) |
| 1. | AUM Growth | 35-40% | 55% |
| 2. | Profit Growth | 30-35% | 84% |
| 3. | GNPA | 1.3-1.8% | 1.16% * |
| 4. | NNPA | 0.5-0.9% | 0.59% * |
| 5. | Return on Assets | 4-4.5% | 5.73% |