MAS Financial Targets 25% Growth Rate Over Next Five Years

NBFC player MAS Financial Services Ltd. aims for an annual growth rate of 20–25% over the next three to five years, intending to double its assets under management every three to four years, driven by a focus on sustainable growth, its Chairman and Managing Director Kamlesh Gandhi said.

“Over the years and in the coming years, we are strategically targeting growth at anywhere between 20–25%. We are not a quarter-to-quarter company, but if you take a three-to-five-year view, we will always be between 20-25% in terms of our growth. In terms of ROAs, we will be maintaining anywhere between 2.75–3%,” he told NDTV Profit.

Gandhi noted that while the NBFC industry may focus on fast growth, MAS Financial Services has deliberately avoided this path, prioritising creditworthiness over aggressive growth for a sustainable outlook.

“We don’t do anything differently, but we follow fundamental principles and extend credit where it’s due, which we've practised for 30 years. It’s always prudent for lending companies to discover growth rather than just pursue it, prioritising profitability, return on assets, and asset quality,” he said.

The top executive highlighted that the company has kept growth controlled even during benign cycles, ensuring asset quality remains intact. “This approach has allowed us to benefit from steady, consistent growth without compromising on financial health."

Gandhi also addressed the looming concerns over the company’s fastest-growing segment, salaried personal loans. He acknowledged the growth in this area but emphasised that it remains a small part of their total AUM.

"If it's a salaried personal loan, it is on a very smaller base. We continue to maintain that product and don't want to exceed more than 10% of our AUM, currently around 6-7%. We will continue with this strategy to keep it below 10%,” Gandhi said.

He added that the product remains within manageable profile risk as the company ensures that each loan undergoes rigorous evaluation to ensure it meets risk-adjusted return standards.

Addressing the company’s gross non-performing asset (GNPA) ratio of 2.41%, Gandhi asserted that despite current industry challenges, the company’s performance remains strong. While the GNPA is slightly higher than historical figures, he argued that it is one of the best in the sector.

“If you see the industry scenario, we are navigating through one of the toughest times, comparable to the Covid-19 situation. Many borrowers are facing cash flow challenges and are over-leveraged due to market dynamics. Despite this, our numbers are among the best in the industry. At 2.41%, the GNPA might look high, but there’s no cause for concern as our ROA remains unaffected.”

Shares of MAS Financial Services were 0.44% higher at Rs 246.14 on the NSE as of 11:37 a.m., while the benchmark Nifty 50 was up 0.28% at 22,898.10.