Arohan Financial Services eyes 20 pc growth in outstanding loan portfolio

Arohan Financial Services Targets 20 Percent Loan Portfolio Growth in FY26.

Expert Analysis:

• Loan Portfolio Growth: Arohan Financial Services aims to grow its outstanding loan portfolio by 20 per cent in the current financial year, after closing FY25 with Rs 6,100 crore.

• Financial Performance: Arohan Financial Services operates 1,102 branches, serving around 21 lakh customers. In FY25, it reported a net profit of Rs 110 crore, with gross NPA at 2.85 per cent and net NPA at 0.53 per cent.

• Sector Requirements: The MFI sector needs USD 4 billion in fresh equity investment to double outreach and leverage debt from the banking sector.

• Operational Efficiency and Recovery: Arohan emphasized shifting towards digital and cashless transactions to improve efficiency and reduce costs, while advocating RBI-sanctioned enforcement mechanisms for recovery.

• Capital Strength and Leadership Appointments: The company has a networth of Rs 2,025 crore with a capital adequacy of 34.09 per cent, and recently appointed Milind Nare as deputy CEO and Ketan Agrawal as deputy CFO.