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India Infoline Finance, a non-banking finance company and subsidiary of IIFL Holdings, is looking to double its loan assets under management (AUM) to about ₹72,000 crore in the next three years, a top official said.
“Last year, our AUM grew 40 per cent to ₹36,273 crore. If we can grow 25-30 per cent year-on-year, we should be somewhere double our AUM in the next three years,” Sumit Bali, CEO and Executive Director, India Infoline Finance, told BusinessLine .
Bali said that India Infoline Finance, whose AUM is predominantly retail, is seeing healthy demand for all its loan products, including SME, personal loans, gold, and affordable housing.
RBI norms
Retail loans, including home loans and small business finance, constitute 85 per cent of the loan book. Nearly 46 per cent of its overall AUM is compliant with RBI’s priority sector lending (PSL) norms. Nearly 25 per cent of its overall AUM is from affordable housing, which is seeing robust growth.
Bali said that securitised loan book constitutes 15 per cent of the AUM and asset quality remains sound, with gross NPA of 2.2 per cent and net NPA of 1 per cent.
India Infoline Finance is now tapping the public markets on January 22 to raise up to ₹2,000 crore via non-convertible debentures (bond issue size of ₹250 crore, with greenshoe option to retain oversubscription of up to ₹1,750 crore).
“Through our strong physical presence of 1,755 branches across India and a well-diversified portfolio, we are able to meet the credit requirements of various segments of the underserved population.
“The funds raised will help us in expanding our operations in more such areas,” said Bali.
He also said that India Infoline Finance is not looking to raise equity capital anytime soon, given the healthy capital adequacy of 18 per cent.
He maintained that the investor sentiments over debt instruments of NBFCs have improved significantly in recent days. It had taken a beating post the IL&FS Group blowout coming to light in October last year.
Gold loans, a flagship product, is seeing robust growth of 50-60 per cent. “We hope to end the current fiscal with a gold loan AUM of about ₹6,200 crore,” a company official said.
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