In Tuesday’s trading session, the shares of a customer-centric finance company hit a 5% upper circuit at Rs. 89.35 on BSE, after the company entered into a co-lending agreement with RBL Bank Limited.
With a market capitalisation of Rs. 1,133.5 crores, the shares of Finkurve Financial Services Limited opened in the green at Rs. 89.3, up by 4.93 percent, as against its previous closing price of Rs. 85.1.
What’s the News:
According to the latest regulatory filings with the BSE, Finkurve Financial Services Limited entered into a co-lending agreement with RBL Bank Limited as part of its normal business operations.
This collaboration establishes a significant strategic partnership aimed at offering Gold Loan to enhance the customer experience using a digital lending platform.
The partnership is expected to offer several benefits to Finkurve Financial Services, including access to the bank’s lower cost of funds, leveraging an established customer base, and benefiting from its regulatory framework, all of which are anticipated to boost the growth of the company’s gold loan portfolio.
Collaborating with RBL Bank Limited is also expected to enhance the company’s credibility and brand value.
Co-lending arrangements enable non-banking financial companies (NBFCs) to share lending risks with banks, thereby mitigating the impact of loan defaults on their balance sheets and improving their ability to manage credit risks and liquidity requirements effectively.
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Financials:
Financially, the company experienced a significant increase in its revenue from operations, showing a year-on-year rise of nearly 42 percent from Rs. 20 crores in Q1 FY23-24 to Rs. 28.4 crores in Q1 FY24-25.
Similarly, its net profit increased during the same period from Rs. 2 crores to Rs. 4.4 crores, indicating a growth of 120 percent YoY.
Stock performance:
The stock has delivered positive returns of nearly 23.5 percent in one year as well as around 54 percent returns in the last six months. So far in 2024, the shares of Finkurve Financial Services have given about 34.3 percent of positive returns.
About the company:
Finkurve Financial Services Limited (Arvog), formerly known as Sanjay Leasing Limited, is a Non-deposit-accepting NBFC registered with the RBI and an Al/ML-powered, customer-centric finance company that mainly focuses on digital gold loans and digital personal loans.
Written by Shivani Singh
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