Poonawalla Fincorp AUM Gained 21% YOY To Rs 3,270 Crore In Sept Quarter

Despite a significant decline in the discontinued loan book, Poonawalla Fincorp Ltd (PFL)'s consolidated Assets Under Management (AUM) increased by 21% year over year (YoY) to Rs 18,550 crore at the end of September 2022 (Q2FY23). At the end of June 2022, its consolidated asset portfolio had grown sequentially by 5% to over Rs 17,660 crore (Q1FY23).

Total disbursement for Q2FY23 was about Rs 3,720 crore, up 44% YoY and 8% quarter-over-quarter on a consolidated basis (QoQ). The corporation reported that the performance in Q2FY23 and September 2022, respectively, exhibited the highest-ever quarterly and monthly disbursement.

PFL, formerly known as Magma Fincorp, had organic monthly disbursements of Rs 1,290 crores in September 2022, setting up a robust growth trajectory for H2FY23. The management has projected YOY growth of 30% for the entire year.

According to PFL's filing with the BSE, the discontinued on-book decreased from about Rs 2,281 crore in June 2022 and Rs 2,974 crore in March 2022 to roughly Rs 1,300 crore at the end of September 2022. The corporation had stated in May 2022 that it will break down the discontinued book over the ensuing 18 to 24 months. The discontinued book will make up 17.9% of the total AUM at the end of March 2022.

The performance of the housing finance subsidiary Poonawalla Housing Finance Ltd. is included in the consolidated results (PHFL). As of September 30, 2022, PHFL's AUM was around Rs 5,600 crore, up from Rs 5,282 crore at the end of June 2022.

PFL stated that it matched asset qualification with the Reserve Bank of India's new requirements in the reporting quarter with regard to the book's credit quality (Q2FY23). By September 30, 2022, it is anticipated that the aligned gross non-performing assets (NPA) on a consolidated basis will be less than 1.6%. The net NPAs are anticipated to be less than 0.9%.