Asirvad Microfinance, a subsidiary of Manappuram Finance Ltd., will start lending to MSME (micro, small and medium enterprises) sector in a big way, said a top official.
“We have been test-marketing MSME lending in Tamil Nadu for a while,” said S.V. Raja Vaidyanathan, managing director. “Our target is to lend about ₹500 crore to ₹750 crore by March 2020. As per the RBI guidelines, Microfinance firms can lend only 15% of their portfolio to MSME.
“It can be easily scaled up. Right now, we are looking for a senior person to head it. It will be an independent division,” he said.
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Asirvad had drawn up plans to expand microfinance lending to ₹5,000 crore by March 2020 from the present ₹2,800 crore. It was also planning to increase its branch network from 920 to 1,200 by March 2020, he added.
“When we were acquired by Manappuram Finance some four years ago, we had 80% exposure in Tamil Nadu. We have taken a decision to reduce our exposure in major cities to 10% each,” he said.