Equitas Small Finance Bank, which has majority of it's business in the micro-finance segment, has projected its other product offerings to grow over the next three years, according to a top official.
Of the total advances contributed to the Tamil Nadu-based bank, the share of micro-finance lending was at 28 per cent, Equitas Small Finance, MD and CEO, P N Vasudevan said.
"Microfinance currently is 28 per cent of the total advances. Over a three year period, it will drop down to 20 per cent", he told PTI.
Vasudevan said the bank's portfolio was witnessing a 'uniform' growth. "Every product is growing at around 40-50 per cent", he said.
The bank is currently present in micro-finance lending, tiny and micro-enterprise, commercial vehicle financing, micro, small and medium enterprise segments.
"Because of demonetisation, we consciously wanted to degrow micro-finance last year. So this year micro-finance will support growth. In the first quarter, micro-finance actually grew sequentially", he said.
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To a query, he said that in the next three years, tiny and micro enterprise loans together would contribute around 25 per cent, micro-finance segment about 20 per cent, commercial vehicle lending 25 per cent and the balance would come from the MSME segment.
"Then we will have another five per cent contribution from the mid corporate segment. This is the picture we are looking at in three years", he said.
Vasudevan said that the company, which forayed into the commercial vehicle financing last year, expects this sector to grow in the coming quarters.
"Two quarters back, we started commercial vehicle financing. That will add to the growth. Right now, new commercial vehicle finance contributes five per cent of total vehicle finance", he said.
The bank expects the commercial vehicle financing portfolio to grow to 35 per cent from the current five per cent in two to three years, he said.
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