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Microfinance company Satin Creditcare Network is set to foray into South India, starting with Tamil Nadu from next month. The move is part of the company’s geographical and product diversification to reduce its overall risk.
“We will start our MFI business from October 1 in Tamil Nadu, and then expand to Karnataka and other States in the region,” said HP Singh, Chairman and Managing Director, Satin Creditcare Network, adding that it will also roll out MSME lending and housing finance in the region gradually.
Post-demonetisation, the company wants to keep its business concentration at 20 per cent in every State. “Before demonetisation in November 2016, close to 40 per cent of our business was in Uttar Pradesh. The State saw a high impact due to the note ban. We have now brought it down to 26 per cent,” he told BusinessLine.
The company operates in 21 States as of now, with a significant presence in Bihar, Madhya Pradesh and Punjab, apart from Uttar Pradesh.
“Credit demand in the MFI segment is also picking up in north-eastern States such as Assam, Tripura and Meghalaya,” said Singh.
NBFC licence
Satin Creditcare is also planning to hive off its business of lending to micro, small and medium enterprise into a separate Non-Banking Financial Company. “We have applied to the Reserve Bank of India for an NBFC licence. It will help us increase our lending to the MSME sector,” said Singh.
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