Bharat Financial Inclusion May Raise Rs 10,000 Crore In FY17

Hyderabad: Bharat Financial Inclusion Ltd, formerly known as SKS Microfinance, may raise Rs 10,000 crore during the current fiscal year to meet the lending requirements, a top executive of the micro-lender said on Wednesday. The company aims to clock a nearly 50 per cent growth in profit after tax (PAT) to Rs 450 crore this year against Rs 303 crore during the last financial year, BFIL president S K Dilli Raj said. "Last year, we raised incremental debt (fresh borrowings) of Rs 7,000 crore. This year we plan to raise Rs 10,000 crore. Out of this Rs 10,000 crore, roughly 35 per cent, that is Rs 3,500 crore, would be from securitisation, somewhere around Rs 1,100 crore from business correspondents arrangements, and around Rs 1,000 crore from money market instruments and the rest is from bank borrowings," Mr Raj told PTI. With about 5.6 million members (excluding Andhra Pradesh and Telangana ), BFIL had a cumulative disbursement of Rs 52,040 crore as of March 2016, the company had earlier said. "Last year, we completed a disbursement of Rs 12,088 crore. This year we plan to disburse Rs 15,500 crore. The assets under management last year was Rs 7,677 crore. This year we expect it to go up to Rs 11,000 crore, almost about 45 per cent growth," he further said. BFIL's net profit stood at Rs 303 crore in last fiscal year as against Rs 188 crore in the previous year, due to the efforts put in to reduce operational costs and lower cost of funds, the annual report said. "PAT for last year was Rs 303 crore. We are guided to Rs 450 crore. That is almost 50 per cent growth. For 2015-16, we have grown at 85 per cent, therefore growing at 45 per cent will not be a challenge for 2016-17," he further said. Replying to a query, he said the company has no plans to expand its footprints to new geographies. It currently operates in 16 states (except Tamil Nadu, Andhra Pradesh and seven North Eastern states). The company was an applicant for SFB (Small Finance Bank) license but did not receive in-principle approval from RBI. The company believes SFB license is a missed opportunity but not a setback, BFIL said in the annual report.

Bharat Financial Inclusion May Raise Rs 10,000 Crore In FY17

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP