North-based non-banking financial company Satin Credit board has approved fund-raising of up to Rs 250 crore via a preferential allotment and/or qualified institutional placement (QIP). The board has also approved an increase in foreign portfolio investment limit to 49 percent from the current 24 percent.
The capital raised will help increase the loan book grow by around 60 percent from last year, said HP Singh, CMD, Satin Credit. In FY16, the loan book was at Rs 3270 crore, which will now grow to Rs 5000 crore in FY17, he said.
The board has approved acquisition of Taraansha Services as a WOS via share swap.
With the growth in loan book, he is confident of the return on equity continuing to be in the 20-21 percent range.
According to Singh , so far the penetration levels in micro finance across board, in all states has been very low and has risen only 50-60 percent across the board. Going forward similar growth is likely to continue, he said.For the full interview, watch video
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