Poonawalla Fincorp, a prominent financial services provider in India, has taken a significant step to enhance its employee benefits package.
The company recently announced the issuance of 500,000 stock options to eligible employees under its Employee Stock Option Plan (ESOP) for the year 2024.
This move reflects Poonawalla Fincorp’s commitment to recognizing and rewarding its workforce while aligning with industry best practices.
Approval and Exercise Price
The decision to grant these stock options was made by Poonawalla Fincorp’s Nomination and Remuneration Committee during a meeting held on September 2, 2024.
The exercise price for these stock options has been set at Rs. 390.60 per share.
The vesting of these stock options will follow the schedule outlined in the ESOP-2024 – Scheme II. This structure adheres to the regulations set forth by the Securities and Exchange Board of India (SEBI).
By providing employees with an opportunity to participate in the company’s growth, Poonawalla Fincorp aims to foster a sense of ownership and alignment with organizational goals.
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Financial Performance Highlights of Poonawalla Fincorp
Poonawalla Fincorp’s recent financial results underscore its robust performance:
Assets Under Management (AUM): As of the first quarter of FY25, Poonawalla Fincorp’s AUM reached an impressive ₹26,972 crore. This represents a remarkable 52% increase year-over-year (YoY) and an 8% rise quarter-over-quarter (QoQ).
Diversified Portfolio: The company’s AUM portfolio is well-diversified across various segments including 35% in MSME finance, 28% in personal and consumer finance, 17% in loans against property and 14% in pre-owned car finance.
Asset Quality Improvement: Poonawalla Fincorp has consistently improved its asset quality. The gross Non-Performing Assets (NPA) ratio declined to 0.67%, a reduction of 75 basis points YoY and 49 basis points QoQ.
The net NPA ratio also improved to 0.32%, down by 44 basis points YoY and 27 basis points QoQ. The Provision Coverage Ratio stood at a healthy 52.53%.
Operational Strength: Operating profit witnessed substantial growth with 47% YoY increase, totaling ₹432 crore and 6% QoQ growth.
The Capital Adequacy Ratio remains strong at 31.57%, with Tier-1 capital comfortably surpassing regulatory requirements (30.09%). The company maintains a liquidity buffer of ₹5,192 crore.
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Poonawalla Fincorp: Employee Empowerment and Future Prospects
By granting stock options, Poonawalla Fincorp not only rewards its employees but also encourages them to actively contribute to the company’s success.
As the organization continues to expand and innovate, these stock options serve as a powerful tool for employee retention, motivation, and alignment with long-term objectives.
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