Poonawalla Fincorp posted a 88 per cent year-on-year (y-o-y) increase in its net profit for Q3 FY23 to ₹150 crore on the back of record high disbursements and improvement in the asset quality. Sequentially, the profit after tax was 16 per cent higher.

Assets under management of the lender were higher by 28 per cent y-o-y and 6 per cent quarter-on-quarter (q-o-q) at ₹13,929 crore. This was led by highest ever quarterly disbursements of ₹3,369 crore, 157 per cent higher on year and 8 per cent on quarter.

Net interest margin (NIM) for the quarter was at 10.7 per cent, an improvement of 94 bps y-o-y and 33 bps q-o-q.

“The quarter gone by witnessed all round performance on the back of relentless execution with highest ever disbursement, PAT and ROA leading us to high growth trajectory,” said MD Abhay Bhutada.

“Q3 FY23 also marked the announcement of sale of our housing subsidiary as PFL continues to focus on building a tech-led digital-first financial services company, with leadership position in consumer and MSME financing,” he said.

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As per its long-term guidance, the company expect AUM growth of 35-40 per cent with return on assets (RoA) of 4-4.5 per cent, as it continues to build a strong retail franchise.

Gross NPA ratio of the NBFC improved to 1.69 per cent as of December 31, down 236 bps y-o-y and 8 bps q-o-q. The net NPA ratio at 0.89 per cent was also 108 bps better y-o-y and 5 bps q-o-q.

Capital adequacy ratio of the company was at 44 per cent as of December 31.