Now Reading: Poonawalla Fincorp new businesses drive 26% of disbursements
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Poonawalla Fincorp new businesses drive 26% of disbursements
Poonawalla Fincorp’s newer lending verticals, gold loans, consumer durable finance, prime personal loans, commercial vehicle and education loans, contributed 26% of total disbursements and 17% of assets under management (AUM) in the…
The Story in Brief
Poonawalla Fincorp’s newer lending verticals, gold loans, consumer durable finance, prime personal loans, commercial vehicle and education loans, contributed 26% of total disbursements and 17% of assets under management (AUM) in the first quarter of FY27, according to a Motilal Oswal report.
The NBFC’s 42 AI initiatives have cut pre-collection costs by around 15% and improved post-due collection efficiency by 27%. Credit costs fell to 2.4% from 2.6% a year ago. The brokerage expects AUM and profit after tax to grow at 43% and 117% CAGR respectively through FY28, with return on assets reaching 2.4%.
The Indian Opinion
The story paints a rosy picture of diversification and AI-driven efficiency. What is often left unsaid is how much of this growth is fuelled by gold loans, a sector already seeing rising competition and regulatory scrutiny. The 117% PAT CAGR projection rests on credit costs staying low through a cycle. The real test will come when delinquencies rise again: can AI maintain those collection gains, or was the improvement simply a reflection of a benign credit environment? Watch the cost-to-income ratio come FY28.
Source: bfsi.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
