[ad_1]
BFL did a stress test of its portfolio, updated the board and investors, and booked non-performing assets (NPAs) alongside, instead of waiting for “the right time”. “In our business, the faster you provision the losses, the faster you will get out of trouble. Most firms fail to identify the problem and make the mistake of not provisioning it early,” says Jain.
The micromanagement helped. BFL came out of the crisis ahead of other lenders. In FY23, the company posted a 64% year-on-year growth in net profit at ₹11,508 crore, and a 31% rise in total income at ₹41,406 crore. Assets under management (AUM) rose 25% to ₹2.47 lakh crore, while net interest income (NII) shot up by 32% to ₹28,846 crore. Gross NPA came lower at 0.94% and net NPA at 0.34%. The company acquired a record 11.6 million new customers during the fiscal, taking its customer franchise to 69.1 million. “This year, we expect to add 14 million customers — 11 million offline and 3 million digital. As the India stack is growing, the ratio of offline and digital customer acquisition will become 50:50 in three-five years,” says Jain.
It was during the pandemic that BFL transformed into an omnichannel NBFC with the launch of its digital platform, which Jain calls the “digital twin”. BFL has 41 million customers on the app. “If all goes well, in the next 12 months, we will fully transform into a digital enterprise across our products and services,” he says.
[ad_2]
Source link