NBFCs record strong growth led by retail loans
NBFCs) have continued their strong growth numbers in the third quarter led by retail loans while Poonawalla Fincorp recorded its highest-ever disbursement at Rs 9,680 crore.
L&T Finance's retail disbursements were at Rs 15,030 crore, up 33% year-on-year, pre-results numbers released by the companies showed.
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 assets 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,
