Financial Decline of Svasti Microfinance: Rising Non-Performing Assets Cause FY25 Loss, Assets Under Management Decrease
In a contrasting turn of events, while PE-backed APAC Financial has maintained a profit streak for the sixth consecutive year, Mumbai-based microfinance company Svasti Microfinance Pvt. Ltd has reported losses for the financial year ending March 2025.
The losses at Svasti Microfinance are primarily attributed to a significant increase in non-performing assets (NPAs) and a decline in its assets under management (AUM). This double blow has severely impacted the company's financial health, pushing it into a loss for FY25.
The ballooning NPAs indicate that a substantial portion of the loans extended by Svasti Microfinance are not being repaid on time or are defaulted, which deteriorates the quality of its loan portfolio and reduces income from interest. Simultaneously, the fall in AUM suggests a contraction in the scale of its lending operations, which impairs its revenue growth potential.
The Norwegian investment firm Abler Nordic, along with Serum Institute of India CEO Adar Poonawalla, is associated with Svasti Microfinance Pvt. Ltd, but the nature of this association remains unspecified.
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PE-backed Apollo Pharmacies has sustained its revenue growth but remains in the red, although the exact revenue growth or losses are not disclosed.
Svasti Microfinance Pvt. Ltd provides loans to various entities, with its headquarters located in the bustling city of Mumbai. The mounting stress faced by Svasti Microfinance Pvt. Ltd is not specified in the provided information.
The struggles at Svasti Microfinance are rooted in a surge of non-performing loans and a decrease in assets under management, both significantly affecting their financial standing. This predicament has led to recorded losses for the company in the financial year ending March 2025.
Despite the challenges faced by Svasti Microfinance, the involvement of Norwegian investment firm Abler Nordic, in conjunction with Adar Poonawalla, the CEO of Serum Institute of India, in the company's operations remains undetermined.
