Expanding Horizons: How a Leading NBFC is Setting New Growth Benchmarks

India’s non-banking financial sector is undergoing rapid expansion, with major players making strategic moves to cement their position in the market. One such institution has demonstrated exceptional financial strength, showing steady asset growth, rising profitability, and a well-planned operational framework. The latest quarter’s performance highlights significant improvements in Assets Under Management (AUM), enhanced asset quality, and efficient business strategies that promise long-term sustainability.

Strong Financial Foundation Fuels Expansion

Poonawalla Fincorp reported a total expenditure of INR 7,150 crore for Q3 FY25, reflecting a 13.3% increase from the previous quarter when it stood at INR 6,313 crore. The AUM surged by 41% YoY, reaching INR 30,984 crore, reinforcing its growing prominence in the financial landscape.

Additionally, Net Interest Income (NII) saw a 22% YoY rise, amounting to ₹672 crore, showcasing consistent profitability and stability. With a Capital Adequacy Ratio at 25.89%, significantly surpassing the regulatory requirement of 15%, and a liquidity reserve of ₹4,808 crore, the company is well-equipped to sustain its growth trajectory. These financial achievements highlight a solid approach toward capital utilization and risk management, ensuring long-term resilience.

Strengthened Lending Portfolio and Credit Stability

Apart from financial performance, an optimized loan portfolio plays a crucial role in business success. The institution has successfully structured its asset mix to maintain a balanced approach to secured and unsecured lending.

The secured-to-unsecured loan ratio is now 54:46, reflecting prudent lending decisions that reduce risk exposure. A proactive credit management approach has resulted in a decline in Gross Non-Performing Assets (NPA) to 1.85%, an improvement of 25 basis points from the last quarter, while Net NPA fell to 0.81%. This downward trend signifies strong credit discipline and stringent risk assessment policies.

By consistently refining its asset structure and prioritizing credit quality, the institution has created a more robust lending ecosystem that mitigates risk while ensuring sustainable expansion.

Operational Excellence and Efficiency Gains

Beyond financials, the company is taking measures to streamline business operations and enhance efficiency across various departments. A structured approach toward automation and digitization has yielded substantial improvements in internal workflows and customer service delivery.

One of the key achievements has been an overhaul of the hiring process, leading to a 90% increase in efficiency. Recruitment cycles that once took 10 days have now been reduced to under a day, ensuring that skilled professionals are onboarded swiftly without compromising quality.

The company has also collaborated with leading academic institutions to foster innovation and develop cutting-edge industry solutions. Such partnerships create a bridge between academic research and real-world applications, enabling the organization to stay ahead in a competitive market.

Leadership’s Roadmap for Future Growth

The leadership team has outlined a long-term vision aimed at reinforcing business stability while unlocking new avenues for expansion. The management remains focused on creating lasting value through meticulous financial planning, risk mitigation strategies, and an unwavering commitment to customer-centric solutions.

Sharing insights Poonawalla Fincorp CEO & Managing Director Arvind Kapil emphasized the organization’s forward-thinking approach:

"Our foundational strategies are designed to create long-term value for stakeholders. We anticipate sustained AUM growth in the coming quarters, leading to robust profitability and greater market influence."

By staying aligned with evolving industry trends and focusing on consistent innovation, the company is positioning itself for sustained success in the financial sector.

The Road Ahead: Leading the Financial Sector

With a firm focus on financial discipline, operational efficiency, and portfolio expansion, the company is well-prepared to scale greater heights in the non-banking financial domain.

Looking ahead, the emphasis remains on sustainable growth models, a robust risk assessment framework, and an adaptive business strategy that aligns with evolving market needs. This structured approach ensures that the organization continues to drive positive financial outcomes while reinforcing its position as a dominant force in the industry.

Through strategic investments, operational refinements, and a commitment to long-term stability, the company is paving the way for a dynamic and resilient future in India’s financial services sector. By maintaining its growth momentum and enhancing operational agility, it is well-positioned to redefine excellence in the ever-evolving non-banking finance industry.