Chennai, Sep 25 (IANS) Expanding the newly launched micro enterprises and jewel loan portfolios and raising about Rs 200 crore through non-convertible debentures (NCDs) and Rs 60 crore via securitisation, the rural India-focused Dvara Kshetriya Gramin Financial Services (KGFS) hopes to close the current financial year (FY20) with a Rs 1,200 crore loan book, said a senior official.
The company also announced raising of Rs 70 crore through the Nordic microfinance initiative (NMI).
“We are aiming at Rs 100 crore business under the micro enterprises loan portfolio this year. Our target clients will be small provision stores, dairies and others in the rural areas,” Joby CO, Chief Executive Officer, Dvara KGFS, told reporters here on Wednesday.
The company also plans to re-launch and promote aggressively the jewel loans this year.
Till last month, the company disbursed Rs 300 crore and hoped to close FY20 with Rs 1,200 crore assets under management (AUM).
According to Samir Shah, Executive Vice-Chair and Group President of the Dvara Trust, with Rs 70 crore investment by NMI the company has raised Rs 167 crore under the Series E round of equity infusion. Dvara KGFS had earlier raised Rs 97 crore in April.
According to Joby, the company plans to raise Rs 200 crore through the issue of NCDs and about Rs 60 crore through securitisation of loan accounts.
Queried about the blended lending rate of 25 per cent, while its cost of fund is about 14.5 per cent, Shah said the issue for rural population was access to capital, which even banks with lower lending rate were not able to provide.
The company, which has 276 branches, spread across Tamil Nadu, Uttarakhand, Karnataka, Chhattisgarh and Odisha, plans to open 10 more branches this financial year.