Poonawalla Fincorp’s gross NPA ratio falls below 1%, net NPA ratio dips below 0.5%

The company attributed the reduction in NPAs since March 2024 to prudent credit policies and collection efficiency.

The management said that although the target was to achieve a net NPA below 1% in 2025 as per its stated vision, the company’s gross NPA ratio fell below 1% and the net NPA ratio dipped below 0.5% as of May 2024 itself. “The company has been able to give stellar results, with pristine asset quality due to its strategic business model, robust risk and governance practices, and improvement in collection efficiency,” the management stated.

Last week, Poonawalla Fincorp announced an 84% year-on-year (YoY) growth in its net profit at ₹332 crore for the fourth quarter of the fiscal year 2024. The total income during the quarter rose by 59% YoY to ₹922 crore. The company’s operating profit for the quarter grew by 93% YoY to ₹409 crore.

For the financial year ending on March 31, 2024, the company’s net profit jumped 83% YoY to ₹1,027 crore. The total revenue during the year grew by 57% YoY to ₹3,152 crore while the operating profit surged 127% YoY to ₹1,389 crore. Asset quality improved during the quarter with the gross NPA declining to 1.16% as compared to 1.44% in the same period of the previous fiscal. Net NPA fell to 0.59% as compared to 0.78% in March 2023.

As of March 31, 2024, Poonwalla Fincorp has assets under management (AUM) of ₹25,003 crore.

Shares of the company have risen by nearly 3% since the beginning of the year. The stock has gained over 32% in the last one year.