Fullerton plans major urban pitch

The Temasek Holdings-promoted Fullerton India Credit Company (FICC) has set its eyes on India's 50 million underserved masses in urban areas for providing "quality" financial services.

Fullerton has built a 100-branch network in 40 towns over the last one year and plans to have presence in 250 locations through 500 branches by the second half of 2008, largely in towns such as Vijayawada, Guntur, Nanded and Kolhapur.

Asia Financial Holdings, the wholly owned subsidiary of one of Singapore's investment arms, Temasek, has infused $150 million as equity capital, of which $50 million was contributed last month and another $50 million is likely by October 2007. It has also committed another $100 million of capital.

In the last one year, Fullerton has created a loan portfolio of Rs 1,500 crore and expects to end calendar 2007 with a portfolio of Rs 3,500 crore. Fullerton's aim is to have presence in 500 towns, that would cover most of the urban areas in the country, said G S Sundararajan, CEO & Managing Director, Fullerton India.

When FICC achieves its expansion target, its employee strength would increase to 20,000 from the current 3,000. Fullerton has created two verticals to cater to small business like grocery stores and auto spare parts shops and the other to serve individuals.

Fullerton will take on its rolls locals from each of the branch locations to work as relationship officers, who will be the single point contact for customers right from loan origination, assessment to collection.

Fullerton will follow a neighbourhood branch concept with every branch in the midst of market areas or residential areas.

FICC will have competition in Citifinancial and HSBC Pragati but the existing players' in the mass market are focused at the top 100 urban locations.