Finance

IIFL Finance eyes 20-25 per cent bottomline growth this fiscal, says CFO Rajak

Published

2 years ago

June 1, 2022

IIFL Finance eyes 20-25 per cent bottomline growth this fiscal, says CFO Rajak

IIFL Finance Restricted (IIFL) is eyeing a 20-25 per cent improve in bottomline progress this fiscal on sturdy demand for its core merchandise resembling dwelling and gold loans and micro finance, its Chief Monetary Officer Rajesh Rajak has stated.

The non-banking finance firm is anticipating a pointy bounce up in its earnings this fiscal, and is assured of attaining 20 per cent topline progress, Rajak informed BusinessLine in an interview.

In FY22, IIFL Finance had recorded a web revenue of ₹1,188 crore, up 56 per cent over ₹760 crore achieved within the earlier fiscal. The entire revenue grew 17 per cent in FY22 to ₹7,006 crore (₹5,990 crore).

“We’re assured of sustaining this efficiency as now we have elevated our department community. We see all our segments — dwelling, gold and microfinance doing effectively. In gold market, about 65 per cent of the market are nonetheless in casual phase. We don’t see any slowdown in any of the 4 core merchandise that the corporate is concentrated on”, Rajak stated.

Department community growth

“Our department community final yr was up 40 per cent on a year-on-year foundation. We’ve got 3,200 branches with over 80 per cent of them in Tier 2 and three cities. Natural progress from the present branches would additionally contribute to our topline progress”.

Rajak made it clear that the sturdy progress seen in 2021-22 was not because of the base impact and even in final March, the corporate had 18 per cent year-on-year progress. The compounded annual progress price (CAGR) within the final three years has been round 18-20 per cent. IIFL Finance at present operates solely in 4 segments—dwelling mortgage, gold loans, enterprise loans and microfinance.

On diversification

He stated that the corporate will not be trying to enter the buyer sturdy loans, industrial car financing, automotive loans or two wheeler loans. ”We aren’t into shopper durables, industrial automobiles, automotive loans or two wheelers. There aren’t any plans to get into them for now. In the meanwhile, all our focus will solely be on our 4 core merchandise,” he added.

On IIFL Finance’s sturdy efficiency, Rajak highlighted the three traits that’s gaining traction in the previous few years —digitisation, urbanisation and extra credit score shifting into formal sources of supply. “We’re rightly positioned at transition level and that’s what is contributing to our progress”, he added.

Bank cards foray

IIFL Finance would quickly method the Reserve Financial institution of India (RBI) for licence to enter bank cards phase like a number of others trying to enter this profitable house.

“Stepping into bank cards would assist improve our product vary and retain clients inside our ecosystem. We’ve got eight million clients and many could be eligible or fascinated with a card. We need to enter this house on our personal. There may be ample alternative because the bank card penetration remains to be low in India in comparison with the rising market economies”, Rajak added.

Co-lending partnerships

Rajak stated that the co-lending is choosing up in an enormous approach and the IIFL Finance has already partnered with 10-15 banks with the State Financial institution of India being the newest. “The co-lending has picked up, however it nonetheless has lengthy runway forward of it. We shall be widening our partnerships. We will even do extra in partnerships which might be working effectively”, he added.

IIFL Finance has tied-up with OPEN (a neo financial institution), which in flip, has partnerships with 17 banks. “As a NBFC, we can’t provide present accounts. For our eight million clients, we provide lending merchandise. The legal responsibility merchandise shall be provided by means of OPEN. This completes our product suite. At the moment, if considered one of our buyer desires a automotive mortgage, he can use OPEN”, he added.

Capital elevating

Rajak dominated out any recent capital elevating for now, and identified that the web revenue of about ₹1,200 crore final fiscal would turn out to be useful to care for the necessities. Additionally, IIFCL at present has capital adequacy ratio of 24 per cent in opposition to the regulatory requirement of 15 per cent. “We’re Aatmanirbhar (self-sufficient) on capital entrance”, he added.

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June 01, 2022

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Finance

St. Augustine's says it will eliminate 50% university employees ahead of accreditation meeting

Published

4 hours ago

November 23, 2024

Press Room

St. Augustine's says it will eliminate 50% university employees ahead of accreditation meeting

RALEIGH, N.C. (WTVD) — Saint Augustine’s University (SAU) announced Saturday it will eliminate several positions, including non-faculty and vacant, this month ahead of its significant accreditation meeting.

Last December, the Southern Association of Colleges and Schools Commissioner on Colleges (SACSCOC) voted to remove SAU from membership due to its financial status. The university’s appeal was denied in February and then in July, the SACSCOC arbitration committee reversed the decision and reinstated SAU’s accreditation.

The SACSCOC board will vote on the next step for the university in December.

In a news release, SAU said to ensure compliance with the Southern Association of Colleges and Schools Commissioner on Colleges and keep its accreditation, the school has reduced its expenses by approximately $17 million in fiscal year 2024 compared to 2023. Reductions, totaling 50% of university employees, include 67 staff positions (41% reduction); 37 full-time faculty positions (67% reduction); 32 adjunct faculty positions (57% reduction); and stopping several under-enrolled programs.

SEE ALSO | St. Augustine’s alumni hosts celebration amid canceled on-campus homecoming

The university also said it will be actively settling outstanding balances with vendors and adjusting various contrasts.

SAU also reported completing four financial audits for fiscal years 2021, 2022, 2023, and 2024, and restoring employee payroll and health insurance benefits.

The HBCU university — remaining millions of dollars in debt — secured a $7 million loan from Gothiuc Ventures with a high-interest rate. To get the loan, St. Aug’s put up much of the university’s main campus and off-campus properties as collateral.

Gothic Ventures tells ABC11 that the interest rate offered was determined by the financial difficulties faced by the university, which included a recent audit, historical revenue losses, and outstanding debt.

SEE ALSO | Saint Augustine’s University’s high-rate $7 million loan puts HBCU in jeopardy, finance experts say

Many, including SAU alumni and finance experts, are concerned about this loan.

“We are concerned about the partnership between Gothic Ventures and Saint Augustine University because if for any reason Saint Augustine is unable to repay Gothic ventures, the land will be lost and the university as we know it will cease to be,” alum Bishop Clarence Laney said.

The lawsuit against the board of trustees by the SaveSAU Coalition was also recently dismissed.

EDITOR’S NOTE: The featured video is from a previous report.

Finance

Assess your financial risk before new policies affect the economy

Published

12 hours ago

November 23, 2024

Press Room

Assess your financial risk before new policies affect the economy

I’ve been thinking about financial risk lately.

Should I change my asset allocation in my retirement portfolio, considering Donald Trump’s successful bid for the White House? Stock market valuations have risen smartly in recent years, which real income growth, productivity improvements, technological innovation, low unemployment rates and healthy corporate profits have largely powered. Yet with the election of Trump, voters have approved a massive economic experiment.

The Trump administration comes into power with many policy goals, but four economic initiatives stand out: Enacting significant tax cuts; imposing broad-based and significant tariffs; sweeping raids, mass deportations and tighter immigration controls; and slashing federal government regulations. The extent that these plans turn into reality and how each policy will interact with the others is uncertain. The risks are obvious. The outcome isn’t.

Enter risk management, a critical concept in finance. Professionals often associate risk with volatility. The tight link makes sense, since owning assets with high volatility hikes the odds of losses if there is a pressing need to sell the asset to raise money.

However, for the typical individual and household, risk means the odds money decisions made today don’t pan out. Managing risk means lowering the negative financial impact on your desired standard of living from decisions gone wrong and when circumstances take an untoward turn.

“Anything that makes reaching or maintaining that more likely reduces your risk, and anything that makes this less likely increases your risk,” writes Bob French, the investment expert at Retirement Researcher. “Everything else is just details.”

The key risk management concept is a margin of safety, a bedrock personal finance idea broader than investment portfolios. It can include having an emergency savings fund, owning life insurance to protect your family and investing in your network of friends and colleagues to hedge against the risk of losing your job. The right mix depends on the particulars of your situation.

In my case, after studying my portfolio, running household money numbers and reviewing lifestyle goals, I’m comfortable with the asset allocation in my retirement portfolio. There is too much noise in the markets for comfort, and market timing is always tricky. The prudent approach with my individual situation is to stay the course.

Finance

Shannon Bernacchia Appointed Interim Finance Director for Regional Schools – Amherst Indy

Published

21 hours ago

November 23, 2024

Press Room

At a Zoom meeting on Friday, November 22, School Superintendent Dr. E. Xiomara Herman recommended to the Regional School Committee and Union 26 School Committee that Shannon Bernacchia be appointed interim Finance Director for the schools, replacing Doug Slaughter who had served in that position since 2019. Bernacchia has served as Assistant Finance Director under Slaughter. Her appointment was approved unanimously by both school committees.

In recommending Bernacchia for the interim director position, Herman cited her “impressive career, dedication, and accomplishments during this transitional period [to a new administration],” adding, “Since joining our district, she has demonstrated exceptional proficiency in managing complex financial operations, including preparing budgets, overseeing audits, and providing detailed financial reporting to the school committee.”

Bernacchia holds a Bachelors Degree in Business Management from Bay Path University and professional training in school fund accounting. She currently holds an emergency School Business Administrator license valid through 2025 and has completed all requirements for her initial license, except for the 300 hours of mentorship. She anticipates completing that requirement in January, 2025. Former Amherst Regional Public Schools and Town of Amherst Finance Director Sean Mangano is serving as her mentor.

Herman expressed confidence in Bernacchia’s ability to head the district’s financial operations.

In acknowledging her appointment, Bernacchia thanked the school committee members and said that she was excited to work with superintendent who is woman.