Page 2 - Non-banking Finance Companies

Non-banking lender SMFG India Credit eyes Rs 75,000 cr loan book by FY26

Mid-sized non-banking lender SMFG India Credit, formerly Fullerton India Credit, is looking at doubling the loan book over the next two-three years from the present Rs 36,000 crore. Japanese financial powerhouse SMFG bought a controlling 74.9 per cent stake in Fullerton in December 2021 for an undisclosed sum, and from May 2023, it was renamed as SMFG India Credit. The company was hit hard by the second wave of the pandemic and reported Rs 894.5 crore net income last fiscal against Rs 1500 crore loss in FY22, as it could grow 10x growth in FY23 over FY22 with loan disbursements doubling to Rs 30,186.8 crore as of March and since then grown to Rs 36,000 crore. "Our assets have already doubled over the past two years, and we expect to double this over the next two to three years, driven by home loans and co-lending along with a more focused approach to funding the Japanese companies operating as original equipment manufacturers here. "We are looking at new products as we haven't yet

Updated On : 21 Jun 2023 | 11:02 PM IST

Warburg Pincus acquires 90% stake in Vistaar Finance for $250 million

Private equity major Warburg Pincus on Monday announced that it has acquired a 90 per cent stake in non-bank lender Vistaar Finance for USD 250 million. The stake in the 13-year-old company has been acquired through a combination of primary and secondary investments, the PE major said in an official statement. The acquisition has been done in partnership with banker Avijit Saha, who joins the company as the chief executive, it said. This is one of the biggest financial sector bets taken by Warburg in the country, adding that Vistaar presently operates in 12 Indian states and has a customer base of 40,000 and over 2,500 employees. The stake has been acquired by Warburg from existing investors and the founders. The company had over Rs 3,150 crore of assets under management as of end-March, and its networth has increased to Rs 1,210 crore after the transactions with the overall capital buffers at 37 per cent, it said. Warburg Pincus' managing director Narendra Ostawal said Vistaar h

Updated On : 29 May 2023 | 5:57 PM IST

UGRO Capital net profit rises two-fold at Rs 14 cr in March quarter

Technology-driven non-bank lender UGRO Capital on Monday reported a two-fold rise in its consolidated net profit at Rs 14 crore in the January-March 2023 quarter. The company had posted a net profit of Rs 6.1 crore in the corresponding quarter a year ago, UGRO Capital said in a statement. Its total income for Q4FY23 jumped 92 per cent to 217.2 crore in the fourth quarter of FY23 compared to the year-ago quarter. The company's asset under management (AUM) more than doubled and stood at Rs 6,081 crore as of March 23, up 105 per cent year on year. Its total income for the full fiscal was Rs 683.8 crore, which was 119 per cent higher from FY22. Shachindra Nath, vice chairman and managing director of UGRO Capital, said, "Despite broader challenges to the lending industry, UGRO Capital has successfully built an AUM of Rs 6,000-plus crore and with a monthly net disbursement of more than Rs 500 crore. Our increasing off book AUM of 40 per cent demonstrates that our credit scoring model an

Updated On : 15 May 2023 | 11:26 PM IST

L&T Finance Q4 net up 46% to Rs 501 cr on higher loan sales, margin

Retail-focused non-bank lender L&T Finance Holdings on Friday reported a 46 per cent year-on-year jump in consolidated net income to Rs 501 crore for the March 2023 quarter, boosted by better margins as its high-yielding retail book grew at a faster rate. The company said for the full year, the consolidated net income rose 52 per cent to Rs 1,623 crore, as its retail portfolio rose to 75 per cent of the total loan book, up from 51 per cent a year ago, giving it a better margin. The margin expansion was also surprising due to cheaper funds, which declined by 4 bps to 7.46 per cent for the year. At 7.46 per cent, this was the lowest ever yearly weighted average cost of borrowing at 7.46 per cent, down 4 bps compared to FY22, in an environment of rising interest rates, the company said in a statement. The year also saw the highest annual retail disbursements of Rs 42,065 crore, driven by strong growth across all retail segments, which in turn was an accelerated reduction in wholesale

Updated On : 28 Apr 2023 | 8:38 PM IST

Poonawalla Fincorp registers highest disbursement of Rs 6,370 cr in Q4 FY23

Adar Poonawalla-controlled non-banking finance company Poonawalla Fincorp on Wednesday said its total disbursement grew 151 per cent year-on-year to record Rs 6,370 crore in the March 2023 quarter. Its assets under management (AUM) increased by 37 per cent year-on-year and 16 per cent quarter-on-quarter to about Rs 16,120 crore at March-end 2023, despite a sharp reduction in the discontinued loan book, the company said in a regulatory filing. Discontinued onbook reduced to approximately Rs 625 crore at March-end 2023. "Total disbursements during Q4 FY23 were highest ever at approximately Rs 6,370 crore, up 151 per cent Y-o-Y and 89 per cent Q-o-Q compared to disbursements of Rs 2,539 crore in Q4FY22 and Rs 3,369 crore in Q3FY23," it said. Gross NPA and net NPA are expected to improve further to less than 1.55 per cent and 0.85 per cent, respectively, at the end of the last fiscal. The company said it would strive to maintain the NNPA below 1 per cent in line with its Management Vi

Updated On : 05 Apr 2023 | 5:26 PM IST

REC board okays Rs 1.2 trillion market borrowing programme for 2023-24

State-owned non-banking finance firm REC Ltd board on Thursday approved Rs 1,20,000 crore market borrowing programme for 2023-24 in its meeting. "Board of Directors of REC Ltd in its meeting held on March 9, 2023, inter-alia approved the market borrowing programme under different debt instruments for the financial year 2023-24," a BSE filing stated. REC will borrow Rs 1,20,000 crore from the market during 2023-24, which includes various types of bonds and loans (Rs 1,05,000 crore), short-term loans (Rs 10,000 crore) and commercial papers (Rs 5,000 crore), it added. The proposed borrowing programme for the financial year 2023-24 will be raised for different maturities, through different instruments, depending upon the actual requirement of funds, asset-liability position and prevailing market conditions, it stated.