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Fullerton India plans to raise Rs 120 bn in FY'19, open over 400 branches

In 2017-18, Fullerton India's disbursement stood at Rs 122.71 billion

Press Trust of India  |  Kolkata 

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Singapore's Temasek Holdings backed NBFC Credit Company Limited is planning to raise Rs 120 billion in the current fiscal as it aims at 50 per cent growth in disbursement, a top official said.

"In the current fiscal, the total disbursement of the company is expected to be Rs 180 billion. Strong growth of rural business will contribute to the high growth," Head Rural Business, Vishal Wadhwa told PTI.

In 2017-18, Fullerton India's disbursement stood at Rs 122.71 billion.

He said that around Rs 120 billion would be required to fuel the projected growth of FY'19. Of this, bank and bonds would constitute 40 per cent each, while the rest would be raised via non-convertible debentures and commercial papers. The company has no plans for equity capital infusion as of now.

Fullerton has been stressing on rural business as it has the potential for higher growth and margin.

Rural business contributes about 35 per cent to the company's overall business and also a higher margin of 200-300 basis points over average urban business, which is why the bottom line impact on company's profit is almost 50 per cent, officials said.

The non banking company is also looking to expand its branch network, but mostly in the rural markets.

"We are looking at 400 plus branches in FY'19 from 350 now. The majority will be in the rural areas where physical presence is crucial. Urban expansion will see more on the digital front for business procurement," Wadhwa said.

The company has forayed into rural West Bengal with three branches in Tarakeswar, Kalyani and Burdwan, but the same would be increased to 10 within this fiscal, he said.

Fullerton has began its operations in Bihar and Odisha recently to cover the eastern region.

First Published: Sun, September 23 2018. 09:10 IST