Anand Rathi Global Finance, the non-banking finance company of the Anand Rathi Group, aims to lend Rs 200 crore to Rs 250 crore every month in the current financial year, taking its loan portfolio size to over Rs 4,000 crore by March 2023, chief executive officer Jugal Mantri said.
“The last two years were largely impacted by Covid-19 and we were going slow on loan growth but of late things have picked up… the good thing is that growth is showing an uptick,” Mantri told Moneycontrol on June 6.
Loan growth will be led by advances to micro, small and medium enterprises, project finance and lending against securities, Mantri said. The company’s net loan book stood at Rs 2,234 crore on March 31, up 58 percent on year.
Anand Rathi Global Finance plans to start offering home loans by Diwali and aims to expand its team and change its business mix. Presently, 75 percent of the company’s balance sheet is in treasury while the remaining portion is in lending, Mantri said.
“What we have decided in principle is not to expand the balance sheet but first move this ratio in favour of lending. This year-end loan-to-treasury ratio would be 40:60 and for the next financial year we are aspiring for the loan-to-treasury book to be 60:40,” Mantri said.
Asked whether there were any inorganic growth plans, Mantri said, “We are open to inorganic growth. As of now, we are not very actively exploring it, but we are not averse to acquiring any lending institution or NBFC where the business model and the risk parameters match our expectations and vision.”
Anand Rathi Global Finance’s asset quality deteriorated in FY22 due to Covid-19 and the Reserve Bank of India’s
circular on asset upgrading in November.
Net non-performing assets stood at 3.61 percent on March 31 and the NBFC is optimistic of achieving 1.5 percent net NPA by the fiscal year end, Mantri said.
“I am confident that by September, even the gross NPA will drop to less than 3 percent and net NPAs will come down to 1.5 percent,” he said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
