Poonawalla Fincorp plans to triple AUM to Rs 45,000 cr by 2025

The company would also look at listing its housing finance subsidiary with an AUM of Rs 10,000 crore

After consolidating control in the erstwhile Magma Fincorp, Poonawalla group is planning to raise its assets under management (AUM) to Rs 45,000 crore by 2025, almost triple from the current levels. The company, now renamed as Poonawalla Fincorp, would also look at listing its housing finance subsidiary with an AUM of Rs 10,000 crore and bring down net non performing assets (NPAs) below one per cent by 2025.

Abhay Bhutada, Managing Director, Poonawalla Fincorp said the company is working to be among the top 3 NBFCs for consumer and small business finance by 2025. It is looking at risk-calibrated accelerated growth ~3x of current AUM.

Its AUM stood at Rs 14,424 crore in June 2021 (Q1FY22), down from Rs 15,922 crore in June 2020 (Q1FY21). There was a small increase in AUM sequentially over Rs 14,225 crore in March 2021 (Q4FY21).

The company posted a net profit of Rs 65 crore in the first quarter as against Rs 38 crore in the same period last year. It had booked a loss of Rs 648 crore in March quarter.

In February 2021, Adar-Poonawalla controlled Rising Sun Holdings signed a deal to acquire majority stake in BSE listed Magma Fincorp. Its stock closed five per cent higher at 183.6 per share.

Despite pandemic limiting the activities, the disbursements rose to Rs 1,732 crore in Q1FY22 from Rs 216 crore in Q1FY21. It disbursed Rs 1,426 crore in January-March 2021.

As a step to scale up business, it plans to launch new products like medical equipment and SME Loan Against Property (LAP) by the end of Q2FY22. This will be followed by roll out in the third quarter of small ticket LAP, Merchant cash advance, co-branded credit card and machinery loan.

The final quarter of this financial year would be the launch of consumer durable, EMI Card, supply chain finance and co-lending business, Bhutada added.

Referring to the housing finance unit, he said the AUM was close to Rs 4,000 crore as of June 2021 with capital adequacy ratio of 57.7 per cent. There is ample liquidity to finance future growth.