Poonawalla Fincorp Ltd Share Price – NSE  / BSE

Finance, Small Cap

The agency has also affirmed the company?s short-term rating at ?CARE A1+?.

CARE Rating stated that the Rating reaffirmations to various debt instruments of Poonawalla Fincorp Limited (PFL) continue to factor in the expectation of strong support from the Cyrus Poonawalla group, having a healthy financial flexibility, which is also reflected from the fact that PFL has been able to raise incremental funds at competitive rates in the debt market.

The ratings also factor in the changes in the senior management team including the appointment of Arvind Kapil as the MD & CEO of the company along with other seasoned professionals, and revised product strategy post the change in management.

The ratings continue to factor in diversified product approach of the company in the retail segment and the company?s plan to launch 6 new products under its offerings. Further, the rating factors in the healthy capitalization and improvement in the overall resource base.

CARE Ratings has taken into consideration an increase in the Gross Non-Performing Assets (GNPA) levels in the last couple of quarters, which is mainly on account of stress witnessed in the small ticket personal loan (STPL) book, for which the company made accelerated provision, which impacted the profitability in 9MFY25. However, the asset quality on overall basis remains at comfortable level.

The ratings also consider the growing, yet relatively moderate, scale with assets under management (AUM) of Rs 30,984 crore (standalone) as on 31 December 2024, as against Rs 25,003 crore as on 31 March 2024 (FY23: Rs 16,143 crore).

The ability of the company to profitably scale up the business with new product lines, while keeping asset quality under check, remains a key monitorable.

Poonawalla Fincorp is a non-deposit-taking systemically important non-banking finance company (NBFC) registered with the Reserve Bank of India (RBI). PFL has various product offerings in the consumer and small business finance segments, including digital personal loans, pre-owned car loans, digital business loans, LAP. It operates through a network of 102 branches as on 31 March 2024, across 19 states of India.

The scrip fell 1.06% to currently trade at Rs 344.25 on the BSE.

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Poonawalla Fincorp (PFL) focused on Consumer & MSME Lending, has unveiled an industry-first AI-Powered Underwriting Solution. Developed in collaboration with the Indian Institute of Technology Bombay (IIT Bombay), this innovative solution integrates artificial intelligence with human intelligence to automate and streamline the credit evaluation process. It aims to accelerate credit decisions by ensuring efficient, accurate, scalable and risk-first approach. By analyzing multiple data points from loan applications, the solution empowers credit managers with faster decision-making capabilities while enhancing the company's risk management framework.

The AI solution integrates Large Language Models (LLM) and Machine Learning (ML) platforms to create an automated and intelligent credit decisioning system. Built from the ground up, it focuses on real-world underwriting demands, keeping the human cognitive model at the core of its architectural design. With this groundbreaking initiative, PFL aims to boost its credit managers' productivity by 40 percent in retail lending.

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Poonawalla Fincorp has expanded its product suite with the launch of its Commercial Vehicle (CV) Secured Loan Business. This new offering aims to bolster the essential logistics and supply chain sectors, by enhancing transportation capabilities for CV operators. The loan covers Small, Light, and Intermediate & Heavy Commercial Vehicles from all major manufacturers, supporting both new and used vehicle purchases. Customers will also benefit from flexible, structured payment and repayment options.

As part of this launch, PFL has also introduced a technology solution aligned with its risk-first approach. The solution focuses on reducing the documentation process for customers, enabling faster turnaround time and a seamless onboarding experience. By integrating with various technology partners, the company has developed assessment framework with validation from verified sources.

With a strong focus on Bharat's tier 2 and tier 3 markets, PFL plans to initially enter 68 locations across 12 states in the first phase, with further plans to expand to 400 locations across 20 states through a hub-and spoke model in the next phase. CV loans will be offered through direct-to-customer, dealers, and channel partners. The company has onboarded industry professionals to provide tailored financial solutions and enhance customer experiences.

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Poonawalla Fincorp has launched an education loan business focusing on students pursuing higher education in international universities. As part of this launch, the company has also announced an industry-first initiative of providing instant sanction for education loans. This seamless, technology-driven financing experience is available to both new and existing PFL customers.

Features of the new education loan:

• Loan up to Rs 3 crore with collateral: Covers tuition, living, travel, books, and insurance premiums for students and co-applicants, with hassle-free approvals

• Loan up to Rs 1 crore: Option available with zero collateral

• Instant Sanctions: An industry-first initiative for loan up to Rs 75 lakh, ensuring faster decision-making process

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