Small business lending fintech platform UGRO Capital reported a 73% jump in assets under management (AUM) to Rs 7,590 crore. Sequentially, the AUM grew 12%.

Share Market Live

NSE

Gross loan origination for the quarter increased 52% year-on-year (YoY) to Rs 2,500 crore, the NBFC said in a second-quarter business update filed with the exchange on October 10. Net loan origination jumped 34% YoY to Rs 1,470 crore.

The company's collection efficiency improved, with a collection rate of about 97.6% in Q2 FY24, compared to 96.8% in the previous quarter.

Collection efficiency is the percentage of total loan repayments (both principal and interest) that the NBFC successfully collects from borrowers in a given period compared to the total amount due in that period. It is a crucial factor that indicates the effectiveness of their loan recovery mechanisms as well as the creditworthiness of their lending portfolio.

"We continue to maintain a healthy liquidity position; our total liabilities (excluding Direct Assignment) stood at around Rs 3,800 crore as of September 2023. We have a diversified lender base of 60 active lenders," the company stated in the filing.

The company per lender exposure stands at Rs 63 crore.

The company's disbursal was up 51.2% YoY and 22.8% quarter-on-quarter (QoQ).

Read Here | Kalyan Jewellers shares jump towards a record high after a glittery business update

The disbursal to AUM ratio declined to 32.50% from 34.2% in the previous quarter.

The company's off-balance sheet AUM -- assets that have been extended to other lenders and securitised -- improved to 45% from 29% year-on-year. The company is on track to achieving its 50% target in this category, demonstrating its proactive approach to diversifying its revenue streams.

In August, UGRO Vice Chairman Shachindra Nath told CNBC-TV18 that 30% of its loans are designated as unsecured and the remaining 70% as secured.

The stock was trading close to 6% higher at Rs 288.65 on BSE today.

Also Read | HDFC Bank, Kotak Bank, SBI continue to get analyst backing despite underperforming in 2023

(Edited by : Shweta Mungre)