Poonawalla Fincorp AUM grows 21% YOY to Rs 3,270 crore in Sept quarter

Sequentially, its consolidated asset portfolio expanded by 5% over Rs 17,660 crore at end of June 2022

Poonawalla Fincorp Ltd (PFL)'s consolidated assets under management (AUM) grew by 21 per cent year-on-year (YoY) to Rs 18,550 crore at end of September 2022 (Q2FY23), despite a sharp reduction in the discontinued loan book. Sequentially, its consolidated asset portfolio expanded by five per cent over Rs 17,660 crore at end of June 2022 (Q1FY23).

At a consolidated level, total disbursement for Q2FY23 stood at approximately Rs 3,720 crore, up 44 per cent YoY and eight per cent quarter-on-quarter (QoQ). The performance showed the highest-ever quarterly and monthly disbursement during Q2FY23 and September 2022 respectively, the company said.

The organic monthly disbursements of PFL, erstwhile Magma Fincorp, in September 2022 were Rs 1,290 crores, creating a strong growth trajectory for H2FY23. The management has guided for 30 per cent YOY growth for the year.

PFL, in filing with BSE, said the discontinued on-book stood at approximately Rs 1,300 crore at the end of September 2022, down from Rs 2,281 crore in June 2022 and Rs 2,974 crore in March 2022. In May 2022, the company had indicated to rundown the discontinued book over the next 18 to 24 months. The discontinued book now stands at 17.9 per cent of consolidated AUM at end of March 2022.

The consolidated figures include the performance of the housing finance subsidiary Poonawalla Housing Finance Ltd (PHFL). PHFL's AUM stood at about Rs 5,600 crore as on September 30, 2022, up from Rs 5,282 crore at end of June 2022.

Referring to the credit quality of the book, PFL said it aligned asset qualification with the Reserve Bank of India’s revised norms in the reporting quarter (Q2FY23). The aligned gross non-performing assets (NPA) on the consolidated basis are expected to be below 1.6 per cent by September 30, 2022. The net NPAs are expected to be below 0.9 per cent.

"The PHL would strive to maintain the NNPA below one per cent in line with its Management Vision 2025", the finance company said in a statement.

The company has liquidity of approximately Rs 4,730 crores as on September 30, 2022, it said.

Early this week, rating agency CareEdge revised the rating for PFL long-term bank facility from “AA+” to “AAA” with a stable outlook. "Over the past 12-18 months, apart from significant capital infusion from the group, PFL has been strengthening its systems and processes across all functions. It digitised its entire customer life cycle and also revamped its underwriting norms and monitoring mechanisms, in an attempt to make loan book more robust", CARE said.