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Capri Global Capital Ltd (CGCL) expects to grow its loan portfolio about five fold to around ₹20,000 crore in the next five years, according to a top official.
While continuing its focus on lending to the micro, small and medium enterprises (MSMEs), housing, and construction finance segments, the non-banking finance company (NBFC) is keeping its options open to grow via the inorganic route, said Rajesh Sharma, Managing Director, founder and promoter, told BusinessLine.
Referring to the economic distress caused by the pandemic, Sharma observed that CGCL plans to disburse up to ₹150 crore to MSMEs under the government-guaranteed emergency credit line by October-end 2020.
As of March-end 2020, CGCL had a loan portfolio of ₹4,035 crore comprising MSME (₹2,047 crore), construction finance and indirect retail lending (₹1,090 crore), and housing loans (₹898 crore).
On the impact of the pandemic on business, Sharma said except for branches in Mumbai, Delhi, Ahmedabad, Surat, Jaipur and Pune, business is returning to near normalcy at other places (Tier-III and Tier-IV centres).
“So, I feel, that by October or November, things will be quiet normal even in the larger cities,” he opined.
As per CGCL’s regulatory filing, the total number of customers who opted for the moratorium on loan repayment stood at 49 per cent (or 11,293) as of June-end 2020. In exposure terms, 54 per cent (or ₹2,189 crore) of the loan portfolio is under moratorium.
Adequately capitalised
The NBFC had a capital adequacy ratio of 38 per cent as of March-end 2020. Further, as per the filing, as of June 30, CGCL’s cash and cash equivalent stood at ₹466 crore and undrawn credit lines from various banks stood at ₹1,074 crore.
“We have liquidity of about ₹1,000 crore. So, we did not opt for a moratorium on our own borrowings by choice, but we extended the same to our customers,” said Sharma.
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