Poonawalla Fincorp Q2FY23 PAT jumps 71 pc YoY to Rs 163 cr

The company said its Assets under management (AUM) stood at Rs 18,560 crores, up by 22 percent YoY and 5 percent QoQ.

Its Disbursements grew to Rs 3,721 crores, up by 44 percent YoY and 8 percent QoQ.

It registered highest ever Return on Assets or RoA at 3.6 percent up by 102 bps YoY and 24 bps QoQ.

Net Interest Income (NII) during the September quarter came at Rs 446 crores up by 33 percent YoY and 12 percent QoQ.

Net Interest Margin or NIM stood at 9.8 percent an improvement of 77 bps YoY and 35 bps QoQ.

Gross NPA at 1.52 percent down by 259 bps YoY and 67 bps QoQ while Net NPA at 0.83 percent down by 118 bps YoY and 13 bps QoQ despite alignment with revised NPA definition as per RBI circular.

These are the best asset quality numbers in last 38 quarters, the company said.

The DDP (Direct Digital Program) mix increased to 47 percent in Q2 from 34 percent in Q1 and 17.5 percent in Q4FY22.

CARE upgraded the company's long-term rating to ‘AAA/Stable’.

During the quarter under review, liquidity buffer stood at Rs 4,812 crores.

Its Standalone Capital Adequacy Ratio stood at 44.9 percent as of September 30, 2022.

Poonawalla Fincorp said the impact of recent interest rate hikes on the cost of borrowing will be gradual owing to the strong ALM management, and diversification of liabilities.

 Commenting on Poonawalla Fincorp’s performance, Managing Director CA Abhay Bhutada said Q2 has been an excellent quarter with differentiated strategy and execution excellence leading to all round performance across business growth, improved credit quality and profitability.

“It was a quarter marked by highest ever organic disbursement, customer acquisition, lowest GNPA & NNPA in 38 quarters, and highest ever PAT & RoA,” he said.

“This sets the momentum for an even exciting second half and beyond.”