VFS Capital aims to secure funds worth Rs 1,500 Cr in FY24 to bolster its expansion strategies
- ByStartupStory | March 4, 2023
A top executive of VFS Capital, a prominent microfinance institution, has revealed that the company is seeking to raise approximately Rs 1,500 crore in the fiscal year of 2023-24 to aid its growth and expansion endeavors.
According to VFS Capital’s MD and CEO Kuldip Maity, “the Kolkata-based NBFC-MFI has amassed approximately Rs 800 crore in the current financial year, which is concluding this month”.
Maity added that “the company has prioritized expanding its loan book and increasing its branch network”. However, he also noted that, “unlike in Bangladesh, microfinance institutions in India are prohibited from raising deposits, resulting in high borrowing costs. Therefore, VFS Capital can only obtain funds from banks and NBFCs”.
It is permitted by the Reserve Bank of India for Small Finance Banks (SFBs) to raise funds from the general public.
According to VFS Capital, they anticipate loan disbursements of approximately Rs 1,300 crore – 1,400 crore by the end of this fiscal year.
Maity stated that “their intention is to increase the loan book to Rs 2,500 crore during the fiscal year of 2023-24.” In the previous fiscal year of 2021-22, their loan book was reported to be Rs 805 crore.
At the event, Dinesh Kumar Khara, the Chairman of State Bank of India, honored six rural women entrepreneurs and borrowers of the Microfinance Institution (MFI).
The MFI provides services to more than four lakh female borrowers across 14 states, including West Bengal, Bihar, Assam, Jharkhand, Odisha, Madhya Pradesh, Uttarakhand, Chhattisgarh, Haryana, Uttar Pradesh, and Rajasthan, with a network of approximately 280 branches.
The MFI has opened 30 more branches in Bihar, Madhya Pradesh, and Rajasthan this fiscal year, and plans to add 50 more branches during FY 23-24. The microfinance institution is dedicated to identifying new locations to serve unbanked people and expand its reach.
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