09 September 2024
Financial Performance:
InCred Finance with a remarkable growth trajectory with a net worth of INR 3,320 crore. The company achieved a profit after tax (PAT) of Rs.315 Cr on a topline growth of 47.4% to Rs.1,293 Cr, a notable increase driven by solid performance across its diversified lending portfolio. The total assets under management (AUM) reached Rs.9,039 Cr, reflecting a 49% (y-o-y) growth. The company maintained a healthy net interest margin of 10.1%, with net interest income amounting to Rs.739 Cr.
The year saw a significant improvement in earnings, with profit before tax (PBT) growing by 104% to Rs.423 Cr. This was complemented by the company’s prudent risk management approach, which resulted in a decline in net non-performing assets (NPA) from 0.91% in FY23 to 0.85% in FY24, highlighting a strengthened focus on maintaining asset quality and minimizing defaults.
Operational Developments:
InCred Finance’s operational strategy focused on broadening its lending portfolio, which is primarily composed of personal loans, student loans, and MSME loans. The company’s personal loan segment, targeting new-to-credit salaried individuals, saw an AUM of Rs.4,000 Cr, marking a 57% increase. This segment caters primarily to underserved but creditworthy customers seeking loans for personal consumption, home improvements, and medical emergencies.
The student loan segment registered the fastest growth among InCred’s offerings, with an AUM of Rs.1,932 Cr, up 86% from the previous year. These loans primarily support students pursuing postgraduate courses abroad, particularly in STEM and MBA programs with strong placement records. Meanwhile, MSME loans, which constitute 35% of the overall portfolio, grew by 32% to Rs.3,107 Cr, underscoring InCred’s commitment to bolstering India’s small business sector.
