ESOP 2024: Poonawalla Fincorp rewards employees with 500K stock options, records 52% AUM growth

Poonawalla Fincorp, a prominent player in the financial services sector, has announced an enhancement to its employee benefits package by granting 500,000 stock options to eligible employees under its Employee Stock Option Plan (ESOP) 2024.

The Nomination and Remuneration Committee of Poonawalla Fincorp approved these stock options at a meeting on September 2. The options will be offered at an exercise price of Rs 390.60 per share. On September 3, Poonawalla Fincorp's share price was trading at Rs 386.25 on the BSE, reflecting a slight decline of 0.50%. The company's market capitalization currently stands at Rs 30,009.43 crore.

In its regulatory filing with the National Stock Exchange of India Limited and BSE Limited, the company outlined that the vesting of these stock options will adhere to the schedule specified in the ESOP-2024 - Scheme II. This grant is in compliance with the guidelines set by the Securities and Exchange Board of India (SEBI).

Poonawalla Fincorp's Financial Performance

Poonawalla Fincorp reported a strong performance in the first quarter of FY25, with its Assets Under Management (AUM) reaching Rs 26,972 crore—a remarkable 52% increase year-over-year (YoY) and an 8% rise quarter-over-quarter (QoQ). The AUM portfolio is well-diversified, with 35% allocated to MSME finance, 28% to personal and consumer finance, 17% to loans against property, and 14% to pre-owned car finance.

The company has made significant strides in improving asset quality, with its gross Non-Performing Assets (NPA) ratio decreasing to 0.67%, down by 75 basis points YoY and 49 basis points QoQ. Similarly, the net NPA ratio fell to 0.32%, reflecting a reduction of 44 basis points YoY and 27 basis points QoQ. Poonawalla Fincorp’s Provision Coverage Ratio was recorded at 52.53%.

The company's operating profit also showed substantial growth, increasing by 47% YoY and 6% QoQ to Rs 432 crore. Poonawalla Fincorp maintained a robust Capital Adequacy Ratio of 31.57%, with Tier-1 capital at 30.09%, significantly above the regulatory requirement of 15%. The company also held a liquidity buffer of Rs 5,192 crore.

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