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Satin Creditcare Network expects 35-40 per cent growth in disbursements in financial year 2018-19 backed by its efforts to broad-base operations and diversify the product basket.
According to Jugal Kataria, Chief Financial Officer, Satin Creditcare, disbursements, which had seen a dip in the period following demonetisation, are ‘back on track’ and expected to grow steadily in the next fiscal.
“We were most impacted post demonetisation with our collection efficiency dropping 20-30 per cent, thereby impacting fresh disbursements. However, things are getting corrected and we are back to normal business,” Kataria told BusinessLine .
The NBFC-MFI’s total loan book is expected to touch ₹5,500 crore by March 31, 2018, up from ₹4,066 crore as on end-March 2017.
Diversification
Satin, which has a strong presence in Uttar Pradesh, Madhya Pradesh, Maharashtra and Punjab, is looking to expand into other markets, including Assam, Odisha and West Bengal.
This apart, the MFI will focus on growing the secured lending portfolio, which includes MSME and housing loans.
“While MFI lending is for shorter tenor and unsecured in nature, lending to MSME and housing sector is secured and of longer tenor. This will help us achieve a better product mix by diversifying risk,” he said.
Rolled out in April 2016, MSME loans are available for customers in Delhi-NCR, Punjab, Haryana and Maharashtra. As on December 2017, Satin disbursed close to ₹68 crore in MSME loans.
“We have a large microfinance book, so it will take four-five years for us to achieve a balance between microfinance and non-microfinance loans,” he said.
Satin’s wholly-owned subsidiary housing finance company, which received licence from the National Housing Bank in November 2017, has already started disbursing loans in Delhi-NCR and Rajasthan, on a pilot basis. The average ticket size of housing loans would be ₹15-16 lakh. The MFI would also lend for micro-housing and home improvement.
“The systems and processes are being put in place. We will look to tap the affordable housing segment in Tier II, III and IV cities,” he said. The MFI, which raised close to ₹460 crore during the current fiscal through a mix of preferential allotment, securitisation and QIP, is adequately capitalised with a capital adequacy ratio of 26 per cent. This would be sufficient to fund its growth needs in the coming fiscal, he added.
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