Poonawalla Fincorp share price up 3% on appointment of HDFC Bank’s Arvind Kapil as MD & CEO

Poonawalla Fincorp share price gained over 3% today (March 19) after the company announced appointment of Arvind Kapil as its new Managing Director & Chief Executive Officer for a five-year term starting June 24. On the BSE, shares of Poonawalla Fincorp shares rose as much as 3.65% to ₹487.00.

Who is Arvind Kapil?

Read more: Adani Group on reported bribery probe by US prosecutors: ‘False’

Arvind Kapil is currently Group Head - Mortgages at HDFC Bank and has over 25 years of experience with the largest private lender in handling retail products. At Poonawalla Fincorp, he is set to replace current MD & CEO Abhay Bhutada, who will move to Poonawalla Group while remaining a non-executive director in the company, a regulatory filing showed.

Read more: TCS share price down 3% after 2.2 crore shares change hands: Will it fall or recover?

Poonawalla Fincorp's performance and financials

The non-bank lender which is focused on consumer and small business finance, saw a net profit of ₹265 crore, up 76 per cent for the December quarter on higher disbursement and better asset quality. In the quarter, the Pune-based firm saw the highest-ever profit, led by the highest-ever quarterly disbursements of ₹8,731 crore, about 159 per cent higher against the year-ago period, it noted.

Read more: Stocks to watch on March 19: TCS, Adani Group, Poonawalla Fincorp, IRCTC and more

Following this, loan book jumped 58 per cent to ₹21,946 crore and net interest margin rose 33 bps to 11.02 per cent while operating expenses to loan book/AUM stood at 4 per cent, an improvement of 206 bps year-on-year.