Satin Creditcare Plans To Diversify Portfolio

New Delhi, August 28: Microfinance company Satin Creditcare Network is completely unaffected by the ongoing non-banking finance company (NBFC) crisis in the country and is planning to diversify its portfolio and geographical presence.

“We are planning to diversify our portfolio beyond micro-finance. In the next four to five years one-third of our portfolio will be non micro-finance. We are also diversifying geographically,” Jugal Kataria, CFO, Satin Creditcare said in an interview.

At present, only 6 per cent of the company’s businesses are into non-micro finance sector. The group has an asset under management of Rs 7,139 crore. The group has three companies in it.

The company, which is listed in both BSE and NSE, had initially focused only in Uttar Pradesh, Punjab and Bihar as its market. But now it has diversified to eastern and north-eastern parts of the country and also southern parts.

“We have brought down our exposure in Uttar Pradesh to 21-22 per cent already,” he added. The company is now present in 22 states.

The company said it is so far unaffected by the economic slowdown as bankers are still supporting micro finance companies.  He said that the company is completely insulated from the negativity in the market.

“We have received Rs 1,400 crore in the first quarter of 2019-20. We have sanction of another Rs 1,400 crore in hand. And we have around Rs 1,800 crore of liquidity,” Kataria said.

Keeping in mind the digitisation drive in the country, the company is moving towards 100 per cent cashless business. The money to the customer is transferred to their bank accounts. Also 12 per cent of the collection happens in a cashless manner.

The micro finance lending rate of the company is 22 per cent. It mostly lends to women in rural and semi-urban areas.