IIFL Finance - Diversified Retail Lending With Focus On Co-Lending: ICICI Direct

IIFL has built an asset-light model with ~40% of portfolio under assignment, securitisation or co-lending.

<div class="paragraphs"><p>Counting hundred rupee Indian bank notes. (Photo: Usha Kunji /BQ Prime)</p></div>
Counting hundred rupee Indian bank notes. (Photo: Usha Kunji /BQ Prime)

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ICICI Direct Report

IIFL Finance Ltd. delivered healthy 18% compound annual growth rate in assets under management in the last five years while focus on operational efficiency and asset quality led to ~23% CAGR in earnings.

Aims to grow AUM at 25% CAGR in FY23-25E with focus on servicing retail and priority loans by leveraging branch network and digital technology.

Earnings target at Rs 2500 crore in FY25E, driven by robust business growth and improvement in operating efficiency. Focus to continue on three-pronged distribution strategy – branch, digital and partnership model.

IIFL has built an asset-light model with ~40% of portfolio under assignment, securitisation or co-lending. Aims to maintain on-off book mix steady ahead.

IIFL maintained superior asset quality with gross non-performing asset at 2.42% (Q2 FY23) including impact of Reserve Bank of India circular on daily stamping of NPA.

Micro finance institution and unsecured business loans were impacted by Covid. It is expected to witness a gradual recovery as nearly 100% of loans are out of moratorium.

Click on the attachment to read the full report:

ICICI Direct IIFL Finance Mgmt Note.pdf


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