VFS Capital targets 200% jump in disbursements in FY23 to Rs 2,000 crore

VFS Capital Ltd is aiming at an over 200 percent jump in disbursements to Rs 2,000 crore in the 2022-23 fiscal, a top company official said on Wednesday. The Kolkata-based microfinance institution is also looking to scale up its loan book by more than 85 per cent to Rs 1,500 crore by the end of the fiscal, he said.

In the financial year ended March 31, it had reported a loan book of Rs 805 crore. Favourable factors like rebound in economic activities and a steady pick-up in credit demand, provide hope for better growth prospects in FY23. This also indicates that the livelihood of microfinance beneficiaries is gradually getting back on track with resuming their income-generating activities.

We had taken a cautious approach during the pandemic and our focus was more on recovery and collections. This year, we are witnessing a very good demand and we expect to disburse fresh loans amounting to Rs 2,000 crore, said Kuldip Maity, MD & CEO of VFS Capital. VFS had disbursed loans to the tune of nearly Rs 600 crore in the last fiscal.

Maity said he expects collection efficiency to bounce back to the pre-covid levels of 98-99 per cent by end of this fiscal from 96 per cent in 2022. The company currently operates through 246 branches in 13 states. It will add 25 new branches in the current financial year to cover new cities across multiple states, he added.