Abhay Bhutada's Poonawalla Fincorp: Delivering On Promises, Defining Financial Excellence In Q3 FY2024

Abhay Bhutada, Poonawalla Fincorp’s MD, has proven his mettle by staying true to his commitment of maintaining a Net Interest Margin (NIM) above 10%. The recently released Q3 FY2023-2024 results showcase the company's impressive performance, with a whopping 76.3% increase in profit, soaring to Rs 265.14 crore.

An insightful report from Anand Rathi concurs, highlighting a 76% surge in net profit, reaching Rs 2,651 million. This substantial growth is attributed to Poonawalla Fincorp's adept management and strategic planning, solidifying its position as a key player in the finance sector.

Also Read: What Is The Net Interest Margin?

His promise to uphold NIM above 10% materialized in a remarkable 11.02% NIM for Q3. This robust performance indicates the company's adept handling of finances, especially in earning more from interest on loans.

A significant contributor to Poonawalla Fincorp's success lies in its interest income, which reached an impressive Rs 714.41 crore in the last quarter. This substantial increase, compared to the previous year's Rs 460.48 crore and the preceding quarter's Rs 690.07 crore, underscores the company's smart financial management and strategic loan distribution.

In a released statement, Abhay Bhutada expressed satisfaction with the exemplary growth in Q3FY24, citing the highest-ever quarterly disbursement and profit, coupled with strong Asset Under Management (AUM) growth, all while maintaining superior asset quality. In essence, the company strategically increased lending to amplify profits while ensuring financial stability.

Abhay Bhutada, Managing Director of Poonawalla Fincorp, confidently leading the financial institution with vision and expertise.

Also Read: Improving Net Interest Margin: Strategies for Financial Institutions

Turning attention to asset quality, Poonawalla Fincorp demonstrated excellence by reducing Gross Non-Performing Assets (NPA) by 36 basis points compared to the previous year. The Gross NPA for the last quarter was an encouraging 1.33%, down from 1.69% a year ago, and the Net NPA decreased to 0.70% from 0.89% in the same period. This decline signals the company's prudent risk management and commitment to maintaining healthy loans.

Poonawalla Fincorp's prowess in lending and asset management is further underscored by its substantial disbursement of Rs 8,731 crore in the last quarter—a remarkable 159% increase from the previous year and a 12% rise from the previous quarter. The AUM, representing the total funds managed by the company, reached Rs 21,946 crore, marking a substantial 58% increase from the previous year and a commendable 9% jump from the last quarter.

Also Read: 6 Leaders Of The Financial World You Must Follow Right Now!

What’s Next For Poonawalla Fincorp?

Looking ahead, Poonawalla Fincorp aims to raise Rs 4,000 crore through the issuance of Non-Convertible Debentures, a strategic move to fuel growth in the upcoming financial year. This forward-thinking approach indicates the company's commitment to sustained expansion and market strength. The positive sentiment is reflected in the stock market, with Poonawalla Fincorp's shares climbing by 1.42% to Rs 490.40 each on January 18.

The success of Poonawalla Fincorp in Q3 extends beyond financial gains; it's a testament to an MD who keeps his promises, leading the company to new heights. The outstanding financial results, coupled with astute risk management and growth strategies, position Poonawalla Fincorp as a standout player in the financial landscape.

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