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Satin Creditcare eyes loan growth of 30-35% in FY20

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Press Trust of India Mumbai
Last Updated : May 15 2019 | 9:41 PM IST

Microfinance company Satin Creditcare Network (SCNL) is looking at a loan growth of 30-35 per cent and aims to raise Rs 6,200-6,300 crore through banks, NBFCs and bonds in 2019-20.

It has set a net profit target of Rs 260 crore for the current financial year. In FY2018-19, its net profit jumped to Rs 201 crore from Rs 75 crore in FY2017-18.

On a consolidated basis, the micro lender's loan portfolio increased by 23 per cent to Rs 7,068 crore during the year ended March 31, 2019.

The company which is primarily into MFI lending, also offers loans to MSME and affordable housing segments through its subsidiaries.

"In the current financial year, we could grow by 30-35 per cent. We have pan India presence reaching across 22 states and the growth would come in from all these areas put together," its Chairman and Managing Director H P Singh said.

He said the focus is to have a growth where quality of loan portfolio is stable.

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The micro lender's 57 per cent borrowing comes from banks, 12 per cent from NBFCs, and the balance is through domestic financial institutions, overseas and domestic funds.

In the current fiscal, SCNL is looking to raise Rs 6,200-6,300 crore through a mix of its funding sources as against Rs 5,000 crore raised in FY2018-19, Singh said.

As of March end, SCNL had 1,163 branches across 22 states. It has a strong presence in states such as Uttar Pradesh, Bihar, North East and Madhya Pradesh, among others.

Last fiscal it added 170 branches and plans to add about 100 more branches in the existing geographies.

"We will concentrate on these 22 states and may be in second half of the financial year we may add another few states," Singh said.

He said the collection efficiency of loans disbursed since January 2018 stood at 99.5 per cent.

"We can fairly say that overhang (of demonetisation) is over and now whatever collection efficiency is there in terms of repayments rates is back to the pre-demonetisation level of 99.5 per cent," he added.

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First Published: May 15 2019 | 9:41 PM IST

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