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Arohan Financial Services Unlisted Shares

Arohan Financial Services eyes 20 pc growth in outstanding loan portfolio

The Ecoonomic Times

2 min read

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.

Takeaways

Investors can expect stable returns as Arohan targets 20 per cent growth, supported by strong profitability, low NPAs, and solid capital adequacy.

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