Genesis Finance Unquoted Share Price

Genesis Finance Company Limited Unquoted Share - Company Overview

Genesis Finance Limited is a well-known Indian financial institution that specializes in providing debt finance to MSMEs and consumers in India. The 50 million MSMEs and developing middle class in India may be financed using a differentiated model based on new technologies, according to the basic concept of Genesis Finance, which makes it a significant and exceptional opportunity. One of the first 25 NBFCs to be registered with the RBI, Genesis has been in business for more than 25 years. The company offers finance for a range of needs, including personal loans, working capital loans, business expansion loans, and loans for vehicles, homes, and businesses.

Genesis Finance Company Limited Unlisted Share Details as of March 31, 2023

Genesis Finance Company Limited Incorporation Details

Genesis Finance Company Limited Board of Directors

Mr. Naresh Garg, Chairman, Managing Director

Mrs. Sangeeta Garg, Whole Time Director

Mr. Gopal Bisht, Whole Time Director

Mr. Mahesh Kumar, Independent Non-Executive Director

Mr. Aashish Ghai, Independent Non-Executive Director

Mr. Feroz Malik, Independent Non-Executive Director

Genesis Finance Company Ltd Principal Business Activities

Genesis Finance Company Ltd Particulars of Holding, Subsidiaries, & Associate Companies

The company does not have any holding, subsidiary company, joint venture or associate company.

Genesis Finance Company Limited Shareholding Pattern (As of 31-03-2023)

Industry Outlook

In the midst of Covid-19 pandemic, the NBFC sector remained flat last year with hopes for recovery. While the economic sector has shown a recovery, the outlook for FY23 still looks gloomy with the evolving uncertainties of the ensuing wave of COVID-19. The severity of infections and effect of lockdown on business on NBFC asset quality will only become apparent over time.

Organic consolidation is also underway with larger NBFCs gaining share. In three fiscals through 2021, the market share of the top 5 NBFCs has risen 600 basis points (bps) to 46%. The ability to identify niches that cater to the relatively difficult-to-address customer segments and asset classes will fuel long-term growth for the sector.

Retail loans are expected to see reasonably broad-based growth in the current and next fiscals supported by pick-up in demand and consequently underlying sales. Gold, home and unsecured loans should clock the fastest growth rates. On the other hand, wholesale credit would continue to de-grow as platforms such as alternate investment funds gain currency.

In terms of asset quality, the change in the Reserve Bank of India's (RBI) NPA recognition norm to a • daily due-date basis instead of the month-end will have implications. Typically, NBFCs ramp up collection activity between the due date and the month-end, which is why their over dues reduce by the end of the month. However, this flexibility is no longer available. And bounce rates in the 60-90 days bucket are estimated at 25-35%. Consequently, a significant proportion of loans in the 60-90 days bucket may slip into the >90 days overdue bucket and will have to be recognized as NPAs.

CRISIL Ratings expects GNPAs to increase by 25-300 bps based on asset class because of the new recognition norm. While home loans and gold loans will be the least impacted, unsecured, and micro, small and medium enterprises loans will bear the brunt.

Another monitorable is the performance of the restructured book. While there has been across-the­ segment improvement in the monthly collection efficiency ratio (MCR) of NBFCs for the quarter ended September 2021, the quantum of restructuring done under the RBI Resolution Framework 2.0 is more than last year. Since this mostly involved offering moratorium, the performance of this book after moratorium is monitorable.