NEW DELHI: Godrej Capital, the financial services arm of the Godrej Group, is aiming to grow its balance sheet to Rs 30,000 crore over the next three years which is currently about Rs 5,500 crore.
The growth in loan book will be mainly driven by loans to Micro, Small and Medium Enterprises (MSMEs). The company, which started its operations two years ago, expects the loan book to reach Rs 12,000 crore by the end of this year.
“Currently, of the total loan book, housing finance is Rs 4,000 crore and Rs 1,500 crore is non-housing finance. We are on course to reach the Rs 30,000 crore balance sheet over the next three years. We hope to take it to Rs 50,000 crore in the next five years,” Manish Shah, MD and CEO at Godrej Capital this newspaper on the sidelines of an event held to launch the digital platform ‘Nirmaan’ to provide MSMEs with the opportunity to scale up their businesses.
It will focus on small and medium businesses to achieve its ambitious target. It aims to increase the number of its MSME customers to 50,000 in three years up from the current 1000 customers. “Our first thousand (customers) were testing the water. This year we look to get another 10,000 MSME customers,” said Shah.
“Over the next three years we expect to have 50,000 MSME customers and about 25,000 home loan customers,” he added.
The firm has zero bad loans across two verticals - home loan and MSME loans - and the MSME book has turned profitable in the March quarter, while the home loan arm has been profitable for the whole last fiscal, said Shah.
The promoters will infuse Rs 1,200 crore capital this fiscal and the first tranche will come this quarter itself. When they launched the holding company, Godrej Group had infused Rs 1,500 crore in equity capital. Talking about the newly launched digital platform, Shah said this is not aimed at commercial benefits in the short to medium term, and small businesses can avail of the services free of cost.