Tag: Poonawalla Fincorp

Poonawalla Fincorp, CARS24 in strategic pact for consumer financing

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Poonawalla Fincorp and CARS24 on Monday announced their strategic partnership for quick and seamless consumer financing on vehicles bought from CARS24.

CARS24 raises $450 million funding in Series F round

“In this partnership, Poonawalla Fincorp will fulfil consumer loans originating through CARS24. Additionally, both parties will partake in the risk and rewards,” they said in a statement.

‘Huge market opportunity’

Vijay Deshwal, Group Chief Executive officer, Poonawalla Fincorp Ltd, said, “With technology at its core, we at Poonawalla Fincorp aim to create a digitally-enabled consumer lending platform and this partnership with CARS24 is a step in that direction. We are optimistic that this will be a great partnership and will provide hassle-free experience to customers in fulfilling their dream of owning a car.”

Cars24 eyes 20% share of the used car market in 5 years

Ruchit Agarwal, Co-founder and CFO, CARS24, said, “With only 20 per cent consumer financing penetration in the used cars industry, we feel that there is a huge market opportunity waiting to be tapped.”

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Poonawalla Fincorp board okays Magma HDI stake divestment

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The board of directors of Poonawalla Fincorp Ltd (PFL) has approved divestment of the company’s direct and indirect shareholding in Magma HDI General Insurance in order to comply with requirements of the Reserve Bank of India and IRDAI.

Sanoti Properties, held by Adar Poonawalla and Serum Institute of India, has agreed to acquire the direct and indirect stake of the company in Magma HDI.

“This structure is in line with other financial services groups with NBFC and general insurance operations and will allow a framework for continued business relationship between PFL and Magma HDI,” PFL said in a statement on Tuesday.

Also see: Poonawalla Fincorp: Consolidated PBT up 151% YoY

PFL will also divest its 48.89 per cent shareholding in Jaguar Advisory which, consequent to the above divestment in MHDI shares, will own only cash and cash equivalent, to Celica Developers, the joint venture partner in Jaguar Advisory.

Regulatory compliance

IRDAI’s Registration of Insurance Companies Regulations stipulates that a promoter of an insurance company cannot be a subsidiary of another company. Post the acquisition of PFL by Rising Sun Holdings in May 2021, PFL has become a subsidiary of RSH. As a result, IRDAI sought compliance from Magma HDI regarding its shareholding structure.

PFL is a joint venture partner in Magma HDI with Celica Developers, Jaguar Advisory and HDI Global SE.

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Poonawalla Fincorp: Consolidated PBT up 151% YoY

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The board of Poonawalla Fincorp Limited (PFL) today announced its unaudited results for the quarter ended September 30, 2021 (Q2FY22).

PFL reported that assets under management grew by ~6 per cent QoQ to ₹15,275 crore, while NIM increased by 104 bps YoY to 9.1 per cent in Q2 of this fiscal (eight per cent in Q2 of FY21), driven largely by a reduction in interest expenses.

“Consolidated PBT was up 151 per cent YoY, increasing from ₹50 crore in Q2FY21 to ₹126 crore in Q2FY22, driven largely by a reduction in interest expenses and credit costs. Collections showed an improving trend from 93.1 per cent in June 21 to 98 per cent in July 21 and further to 99.9 per cent in September 21.

Consequent to improvement in collections in Q2of FY22, gross stage 3 and net stage 3 assets decreased from 5.4 per cent and 2.7 per cent, respectively, as at June 21 to 4.1 per cent and 2.0 per cent, respectively as at September 21 on a consolidated basis. The company has one of the best provision coverage ratios across all three stages. The standard asset coverage ratio as at September 21 stands at 3.4 per cent (3.0 per cent in September 20); Stage 3 asset coverage ratio stands at 52 per cent (38 per cent in September 20).

Liquidity and cost of borrowings

The company continues to maintain a strong liquidity position with around ₹1,700 crore of surplus liquidity, with additional term loan sanctions in the hand of ₹1,750 crore. A significant amount of existing loans were repriced in Q2FY22, with a reduction of over 120 bps. New sanctions received at sub-6.5 per cent. The company’s long-term rating was upgraded by two notches to ‘AA+; Stable’ by Care Ratings following its review process. The short-term rating was retained at the highest level of ‘A1+’.

Revised product focus

Pursuant to the capital infusion and rebranding, the Company launched new products like Personal loans, Loans to Professionals, and SME LAP. Other products at an advanced stage of roll-out are medical equipment loans, small ticket LAP, and co-lending/fintech partnerships.

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Abhay Bhutada resigns from Poonawalla Fincorp

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Abhay Bhutada, Managing Director of Poonawalla Fincorp, has resigned with immediate effect.

“Abhay Bhutada, Managing Director of the company has resigned from the board of the company with immediate effect from September 16, 2021, and the board of directors has accepted Abhay Bhutada’s resignation,” Poonawalla Fincorp said on Thursday.

Vijay Deshwal, Group CEO, Poonawalla Fincorp will continue to run the operations of the company, it said

“Bhutada has decided to step down as the MD of the company in the broader interest of the company and its stakeholders,” it said.

Barred from market

The development comes a day after the Securities and Exchange Board of India barred Bhutada and seven other people from the securities market for alleged insider trading in the shares of the company, which was earlier known as Magma Fincorp.

SEBI has also ordered impounding of wrongful gains worth over ₹13 crore, according to an interim order.

Bhutada had however, denied all allegations.

Poonawalla Fincorp’s scrip closed 4.99 per cent lower at ₹172.15 apiece on the BSE.

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Gaurav Sharma joins Poonawalla Fincorp as Group CTO

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(Business Wire India) Poonawalla Fincorp Limited (Formerly Magma Fincorp Limited) today announced the joining of Gaurav Sharma as its Group Chief Technology Officer (Group CTO). Gaurav will lead and manage the technology initiatives for the group and further solidify the group’s commitment of creating a world-class digital technology-based platform for financial services.

Gaurav is a Mechanical Engineer from IIT (Roorkee) and has successfully led technology and its applications to create new business opportunities and solve real-world problems. He comes with over 25 years of rich experience in driving transformation across various industry domains. He was last associated with L&T Financial Services as Chief Technology Officer and was responsible for leading transformation initiatives cutting across multiple lines of businesses and functions. He has led implementation of loan origination systems, collection systems, loan administration systems, business operations, and customer servicing platforms across all retail lending businesses. He has been instrumental in setting up and implementing cloud computing, data lake for advanced analytics, and ERP system along with various other organization wide system initiatives. He has also previously worked with Max life as Head of Product Development and TCS as technology lead.

CA Abhay Bhutada, Managing Director, Poonawalla Fincorp Limited said, “We are thrilled to welcome Gaurav to the executive team. Gaurav’s true visionary mindset combined with our suite of innovative technology and our continued investment in technology is a step towards our commitment to create world-class solutions for financial services. I am certain that his deep and extensive experience spanning across financial services platforms will benefit us immensely as we at Poonawalla Fincorp aims to create digitally enabled robust technology-driven financial services platform.”

Also read: Poonawalla Fincorp signs MoU with Institute of Company Secretaries of India

Commenting on his appointment, Gaurav Sharma said, “I am excited to join Poonawalla Fincorp and play a role in the digital transformation journey. The digital revolution in financial services is changing the landscape of NBFCs and I am sure technology will be instrumental in the high-growth trajectory that we have envisaged for our businesses. I look forward to drawing from my prior experience and endeavour to guide the business to execute the company’s vision of becoming a leader in financial services.”

About Poonawalla Fincorp Limited Poonawalla Fincorp Limited (Formerly known as Magma Fincorp Limited) is a non-deposit taking systemically important non-banking finance Company (ND-SI-NBFC), registered with the Reserve Bank of India (RBI). The company started operations nearly three decades back and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange in India (NSE). Consequent to the capital raise of ₹3,456 crore in May’21, the company is now part of Poonawalla Group with majority stake owned by Rising Sun Holdings Private Limited, a company owned and controlled by Mr. Adar Poonawalla.

The company’s new identity “P” stands for Passion, Principles, Purpose, People and Possibilities. Poonawalla Fincorp Limited (“PFL”) has a widespread coverage with 296 branches across 21 States and a loan book of more than ₹14,000 crores. The company offers a bouquet of financial products including Loans to Professionals, Business Loans, Personal Loans, Pre-Owned car loans, Mortgage finance, and general insurance.

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Magma Fincorp Limited changes name to Poonawalla Fincorp Limited

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Magma Fincorp Limited, an RBI-registered Non-Banking Finance Company (NBFC), has been rechristened as Poonawalla Fincorp Limited and has initiated rebranding activity, following the acquisition of controlling stake by Adar Poonawalla-led Rising Sun Holdings Private Limited on May 21 this year.

Along with this, its fully-owned housing finance subsidiary Magma Housing Finance Limited is also renamed as Poonawalla Housing Finance Limited.

A press statement issued by Poonawalla Fincorp said that in its new avatar under the Poonawalla brand, the group will be focusing on the consumer and MSME segment. As a part of the new strategy, the company will expand its product range to include personal loans, loans to professionals, merchant cash advance, loan against property, consumer finance, and machinery loans along with existing products of business loans, pre-owned car loans, and home loans.

Co-branded credit card

Earlier this month, the board had approved a proposal to enter a co-branded credit card arrangement for issuance of co-branded credit card, subject to obtaining necessary approvals from the regulatory authorities.

Adar Poonawalla, Chairman, Poonawalla Fincorp Limited, said in the statement, “This marks the beginning of not only a change of brand but the fundamental way in which we will do business. From new products to new geographic locations across India; we hope to serve every citizen, helping them in fulfilling their personal and professional aspirations.”

Poonawalla Fincorp Limited started operations nearly three decades back and is listed on the BSE Limited and the National Stock Exchange in India. Consequent to the capital raise of ₹3,456 crore in May, the company is now part of Poonawalla Group with a majority stake owned by Rising Sun Holdings Private Limited, a company owned and controlled by Adar Poonawalla.

The company is present across 21 States with 297 branches and the customer base stands at approximately 5.4 million with a loan book of more than ₹14,000 crore. Poonawalla Fincorp offers a bouquet of financial products including SME finance, mortgage finance, unsecured loans, and general insurance.

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Magma Fincorp is now Poonawalla Fincorp

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Magma Fincorp has been renamed Poonawalla Fincorp and has initiated rebranding activity.

This comes after the Adar Poonawalla-led Rising Sun Holdings acquired a controlling stake in the NBFC on May 21.

“Along with this, its fully-owned housing finance subsidiary Magma Housing Finance is also renamed as Poonawalla Housing Finance,” the company said in a statement on Thursday.

Under the new branding, the group will be focussing on the consumer and MSME segments. It will also expand its product range to include personal loans, loans to professionals, merchant cash advance, loans against property, consumer finance, and machinery loans along with existing products of business loans, pre-owned car loans and home loans.

“This marks the beginning of not only a change of brand but the fundamental way in which we will do business. From new products to new geographic locations across India; we hope to serve every citizen, helping them in fulfilling their personal and professional aspirations,” said Adar Poonawalla, Chairman, Poonawalla Fincorp.

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