Poonawalla Fincorp Limited — Credit Ratings, 03-07-2025: Credit Rating

CARE Ratings has reaffirmed Poonawalla Fincorp Limited’s (PFL) strong credit rating with a stable outlook across various instruments including long-term bank facilities (₹26,731.30 Cr), commercial paper (₹7,500 Cr), and assigned ratings to newly issued non-convertible debentures (₹8,000 Cr) and subordinate debt (₹750 Cr). The ratings reflect the company’s strong promoter support from the Cyrus Poonawalla group, healthy capitalization with a tangible net worth of ₹7,892 Cr and gearing of 3.28x, and a diversified product portfolio with focus on quality asset growth. Despite a rise in gross NPAs to 1.84%, provisioning levels are prudent and asset quality is expected to improve with calibrated underwriting. The stable ratings support PFL’s ability to raise funds competitively, maintain investor confidence, and sustain growth in a diversified lending business.