The lender's NII rose by 24 per cent YoY to Rs 7,435 crore in the same period, as it booked about 7.84 million loans, its highest-ever in a single quarter, up 5 per cent YoY. Further, it reported its highest-ever customer addition of 3.14 million in the quarter, taking its customer base to 66.05 million as of December, 2022.
Given strong momentum in the first three quarters, the company now estimates new customer addition at 11 million in FY23.
However, its asset under management (AUM) grew by just 12,476 crore in Q3, because of slower AUM growth in the mortgage portfolio due to intense pricing pressure. Having said that, AUM grew 27 per cent YoY to Rs 2.30 trillion, compared to Rs 1.81 trillion.
“Good quarter across all financial and portfolio metrics albeit marginally lower AUM growth. On track to deliver Rs 52,000-53,000 crore of core AUM growth in FY23. Q3 witnessed highest ever loans booked and new customer addition”, said the company.
In Q3, business-to-business (B2B) disbursements were up 6 per cent at Rs 16,026 crore as against Rs 15,107 crore in Q3FY22. B2B business witnessed muted post festive demand in November and December. But January is looking better, it added.
Provisions of the lender dropped 20 per cent YoY to Rs 841 crore. And, the company expects its loan losses and provisions at 1.4-1.5 per cent of average assets in FY23. It is holding a management and macro-economic overlay of Rs 1,000 crore as of December 31, 2022.
Asset quality also improved, with gross non-performing assets (GNPAs) at the end of Q3FY23 at 1.14 per cent compared to 1.17 per cent in the previous quarter. Similarly, net NPAs were down to 0.41 per cent, compared to 0.44 per cent in the previous quarter.
While the company's cost of funds in Q3 stood at 7.14 per cent, up 23 basis points (bps) from the previous quarter, it has managed to deliver margins at Q2 levels.
Its deposits book stood at Rs 42,984 crore at the end of December quarter, with the net deposit growth of Rs 3,562 crore in Q3. The company is on track to deliver its goal of 25 per cent of consolidated borrowings from deposits in the medium term, it said.
“Competitive intensity remained elevated across all products. The Company continues to protect its margin profile across businesses. The Company is gradually passing on the impact of higher interest rates to customers across businesses”, the lender said.
As its long-range strategy (2023-27), the company aims to be a leading payments and financial services player in the country, with about 100 million customers, a market share of 3 per cent of payments gross merchandise value, and 3-4 per cent of the total credit market in the country.
It is also aiming to be among the top-20 profit-making companies in India and among the top-5 profit-making financial services firms. Further, it is looking at building businesses with a 10-year view anchored on prudence and risk philosophy management to deliver ‘through the cycle’ 19–21 per cent shareholder returns.
It has also envisioned to acquire and cross-sell across payments, assets, deposits, insurance, investments and broking products to consumer, MSME, commercial approach, and rural consumers across all consumer platforms.
Shares of the lender closed 0.71 per cent at Rs 5,756 on the BSE.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app