Gets nod for equity infusion of Rs.3 crore
Kolkata-based micro-finance institution, Village Financial Services (VFS), is looking at an over 48 per cent growth in its loan book, to Rs.200 crore in the current fiscal.
Last year, its loan book stood at Rs.135 crore — Rs.110 crore from its NBFC-MFI business and another Rs.25 crore from its business correspondent (BC) model.
“In FY16 we hope disbursements to be in the range of Rs.200 crore. Around Rs.150 crore should by through the NBFC-MFI business and the remaining Rs.50 crore from BCs,” Kuldip Maity, MD and CEO, VFS, told BusinessLine on the sidelines of a banking summit organised by the West Bengal chapter of the Association of Micro Finance Institutions (AMFI).
According to him, the micro finance sector has done well in FY15, witnessing around 30 per cent growth in disbursements.
VFS, which is currently present in West Bengal, Assam and Bihar, is looking to expand to Jharkhand this year. It has around 135,000 customers and 131 branches, which it hopes to increase to 170,000 and 147 respectively, by FY16.
According to Maity, VFS has also obtained approval for an equity infusion to the tune of Rs.3 crore from the Small Industries Development Bank of India (SIDBI). “This will be our first institutional investment,” he said.
VFS, he said, has also applied for small finance bank licence. According to him, 62 per cent of its branches are located in under-banked areas and hence the MFI qualifies for the small finance bank licence. Business Line
