What were the drivers for Poonawalla Fincorp’s best ever performance? Abhay Bhutada answers

economictimes.indiatimes.com:

Abhay Bhutada, MD, Poonawalla Fincorp, says “in the last eight quarters, there is a consistent performance in terms of disbursement as well as AUM growth. The most important thing here is that the base is very low. It is easy to achieve this number. And we have given a guidance of 35-40%. Considering the current base, I think in the future, we will stick to our guidance of 35-40%. The focus will be on to achieve the asset quality, maintaining superior profitability and at the same time maintain this 35 to 40% AUM growth.

The one thing that struck the most was your highest ever quarterly disbursement figure, highest ever profit, lowest NPA and GNPAs. Before getting into details, what were the drivers for this kind of growth especially at a time when some are saying that the environment is showing some slowdown in the lending space?
Abhay Bhutada: See, this is the outcome of efforts of the last 2.5 years. Post-acquisition, we have clearly articulated our strategy. Our chosen segment is pre-owned car, loan against property, personal loan, business loan, supply chain finance, machinery loan, medical equipment loan, consumer finance. The segment which we are targeting is a very different kind of segment. It is a combination of FinTech, bank, and NBFC.

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It requires a lot of courage to target this segment being an NBFC but because we are a CRISIL AAA, considering our less cost of funds, low operating cost being a digital model and less credit cost, we do not give loan to new only