Moneyboxx Finance improves asset quality with ARC transaction

Moneyboxx Finance Limited executed an Asset Reconstruction Company (ARC) transaction on September 8, 2025, transferring non-performing assets (NPAs) and written-off accounts totaling ₹ 60.90 crores. This move, effective June 30, 2025, involved issuing Security Receipts (SRs) in a 15:85 ratio, aligning with RBI guidelines for transparency and asset recovery. The company anticipates a strong recovery from the ARC pool, with an overall recoverable amount exceeding ₹ 80 crores, and expects 40-50% recovery.

Post-transaction, Moneyboxx Finance reported a notable improvement in asset quality metrics as of June 2025. The 90+ PAR % (AUM) decreased by 452 basis points to 3.36%, while GNPA % (Owned) saw a reduction of 617 basis points to 1.11%. Collection efficiency also improved by 430 basis points, reaching 93.6%. These improvements reflect the company's strategic pivot towards a secured lending model and stricter underwriting standards, with secured loans increasing to 64% of Q1 FY26 disbursements.

The company maintains a healthy capital position with a CRAR of over 28% and a low debt-to-equity ratio of 2.58 times as of June 30, 2025. Moneyboxx Finance also secured INR 34 crore from the State Bank of India in August 2025 and has a debt pipeline exceeding INR 500 crore for the second half of FY26.