NBFCs record strong growth led by retail loans

Mahindra & Mahindra Financial Services Ltd (M&M Fin) said its disbursements in the fourth quarter ended March was about Rs 15,300 crore, up 11% year–year, taking the full year disbursement to approximately Rs 56,200 crore up13%.

As a result of a strong growth in disbursements, total for M&M Finance increased 24% year-on-year to Rs 1.02 lakh crore as of March. M&M Finance was the largest among the NBFCs, which released their provisional numbers.

"Collection efficiency is estimated to be at 96% for the year ended March 2024 (FY23: 96%). As ofMarch 31, 2024, Stage-3 is estimated at about 3.3% (vs. 4% as at December 31, 2023 and 4.5% as at March 31, 2023)," M&M Fin said. Stage 3 assets are loans due for more than 90 days.

M&M Fin said it has a liquidity chest of over Rs. 7,650 crore at the end of March 2024.

For L&T Finance which has pivoted towards retail loans in the last few years, 94% of loans are from the retail sector up from 75% a year ago.

The company's retail loan book for the quarter ended March is estimated at Rs. 80,010 crore, up 31% year-on-year. Retail disbursements at Rs 15,030 crore, grew 33% year-on-year basis for the quarter ended March and at Rs 54,253 crore, for the year ended March, up 29%.

Rural business disbursements rose to Rs 5,765 crore up from Rs 4,401 crore recorded in the same quarter a year ago. Urban finance disbursements rose to Rs 5,980 crore compared with Rs. 4,527 crore recorded in the same quarter a year ago.

For Poonawalla Fincorp, which is the smallest among the NBFCs that released pre-results numbers, total disbursements during the fourth quarter were the highest ever at approximately Rs 9,680 crore up 52% year-on-year up from Rs 6,371 crore a year ago.

Total AUM grew 54% to Rs 24,800 crore as of March. The company expects gross NPAs to be at less than 1.20% at the end of March 2024.

Poonawalla has liquidity of about Rs 3,600 crore as of March. Managing director Abhay Bhutada said fiscal ended March 2024 was a year of significant growth across all business parameters for the company.

"Q4FY24 was the best quarter thus far with the highest ever quarterly disbursement across all products, all through organic route, with best-in-class asset quality. We continue to have amongst the lowest cost of funds in the industry. This sets us on course to achieve the stated vision 2025," Bhutada who will be replaced as CEO by former HDFC Bank executive Arvind Kapil later this quarter said.