Hero FinCorp, led by Abhimanyu Munjal, is preparing for its public market debut by clearing bad loans totaling nearly Rs 1,200 crore, about 3.4% of its loan book. Originally established in 1991 as Hero Honda FinLease Ltd, a Hero MotoCorp subsidiary, the company has evolved into a diversified financial services provider, offering solutions such as two-wheeler financing and SME lending across 4,000 cities and towns in India.

Despite facing impairments of Rs 1,214.71 crore for the nine months ended December 31, 2023, primarily due to written-off bad loans, Hero FinCorp's asset quality profile has improved, with gross and net stage 3 ratios standing at 4.7% and 2.3%, respectively, by December 31, 2023. 

The company's proactive measures to control fresh slippages are vital for its future rating sensitivity, especially with the increasing share of unsecured loans. Despite write-offs, Hero FinCorp saw significant growth, with a 25% rise in assets under management and a 26% increase in disbursals in the first nine months of FY24. Notably, profit after tax surged impressively by 168% during this period.