Recently, banks and Non-Banking Financial Companies (NBFCs) are witnessing a rise in their share prices. This is mostly due to their latest business updates for the end of the financial year, indicating strong growth on an annual and monthly basis.
Following are all the details and the causes behind the rise in the share prices of banks and NBFCs, which have gained more than 4 percent in the last five trading days and continue to rise.
Poonawalla Fincorp Limited
As mentioned in the recent filings on the stock exchanges, the year witnessed remarkable improvement not only in AUM but also in profitability and credit quality across four quarters.
With respect to the quarter ended 31st March 2024, total disbursements during Q4 FY23-24 were the highest ever at approximately Rs. 9,680 crore up 52 percent YoY and 11 percent QoQ compared to disbursements of Rs. 6,371 crore in Q4FY23 and Rs. 8,731 crore in Q3FY24.
In comparison to the disbursements of Rs. 6,371 crore in Q4FY23 and Rs. 8,731 crore in Q3FY24, the total disbursements for Q4 FY23-24 were the highest ever, at around Rs. 9,680 crore, up 52 percent YoY and 11 percent QoQ, with respect to the quarter ended 31st March 2024.
As of 31st March 2024, Assets Under Management (AUM) grew by 54 percent YoY and 13 percent QoQ to approximately Rs. 24,800 crore, and the company continues to have ample liquidity of approximately Rs. 3600 crore.
With a market capitalisation of Rs. 38,487 crore, the share price of Poonawalla Fincorp Limited jumped by nearly 2.3 percent on BSE to Rs. 506 in the trading session of Thursday, compared to its previous close of Rs. 494.75.
Poonawalla Fincorp Limited, previously known as Magma Fincorp Limited, is a RBI registered non-deposit taking NBFC and is engaged in providing consumer and MSME financing, as well as General Insurance services.
RBL Bank Limited
With a market capitalisation of Rs. 15,402.8 crore, the share price of the company moved up by nearly 5.6 percent on BSE to Rs. 266.55 in the trading session of Thursday, compared to its previous close of Rs. 252.4.
According to the recent filings on the stock exchanges, the retail advances of RBL Bank grew 29 percent YoY while wholesale advances grew 7 percent YoY for the quarter ended March 31, 2024.
The bank reported a 22 percent YoY growth in the total deposits to Rs. 1.03 lakh crore in Q4 FY23-24 from Rs. 84,887 crore in Q4 FY22-23 and a 12 percent growth QoQ from Rs. 92,746 crore in Q3 FY23-24.
Further, the Gross Advances also increased by 19 percent YoY to Rs. 85,640 crore in Q4 FY23-24 from Rs. 71,857 crore in Q4 FY22-23 and a 5 percent growth QoQ from Rs. 81,864 crore in Q3 FY23-24.
RBL Bank Limited is one of India’s leading private sector banks engaged in the business of providing a wide range of banking and financial services including wholesale banking, retail banking, treasury operations and other banking-related activities.
L&T Finance Limited
With a market capitalisation of Rs. 25,626 crores, the share price of the financial arm of Larsen & Toubro Group jumped by nearly 3% on BSE to Rs. 175 in the trading session of April 4th, compared to its previous close of Rs. 170.05.
Retail disbursements for Q4 FY23–24 are estimated at Rs. 15,030 crores, indicating a growth of 33 percent on a year-on-year basis; for FY23–24, it is estimated at Rs. 54,253 crores, a growth of nearly 29 percent compared to FY22-23, based on the data available in the filings on the stock exchanges.
L&T Finance Limited reported that, on a year-on-year basis, the retail loan book at the end of March 2024 is estimated at approx. Rs. 80,010 crores, representing a growth of nearly 31 percent compared to the previous year.
Additionally, the data also showed that the portfolio’s retailisation is estimated at around 94 percent as at the end of Q4 FY23-24.
L&T Finance Holdings Ltd is an RBI-registered NBFC offering a wide range of financial products and services including farm equipment finance, two wheeler finance, micro loans, consumer loans, home loans, real estate finance, and other services.
AU Small Finance Bank Limited
The bank delivered a strong operational performance with 9 percent QoQ growth in its deposits and advances.
The overall deposits increased by 9 percent QoQ from Rs. 80,120 crore in Q3 FY23-24 to Rs. 87,182 crore in Q4 FY23-24, with a growth of 26 percent YoY from Rs. 69,365 crore in FY22-23 to Rs. 87,182 crore in FY23-24.
This was driven by strong CASA mobilisation with additional CASA deposits increasing by 10 percent QoQ and 9 percent YoY.
Bank securitised loans worth Rs. 616 crore during the quarter and its total Gross Loan portfolio grew by 8 percent QoQ and 28 percent YoY.
With a market capitalisation of Rs. 41,598 crores, the share price of the bank jumped by nearly 5.7 percent on BSE to Rs. 639.8 in the trading session of April 4th, compared to its previous close of Rs. 605.2.
AU Small Finance Bank Limited is engaged in providing a wide range of banking and financial services including retail banking, wholesale banking and treasury operations and other services.
Written by Shivani Singh
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