Industry

Fedfina targets ₹15,000 crore under AUM

To achieve via new products and branch expansion

Fedfina (Fedbank Financial Services Ltd.) has drawn up a plan to increase its assets under management (AUM) by nearly eight times in five years, said a top official.

“Today, we have an AUM of nearly ₹2,000 crore and our aim is to hit ₹15,000 crore in five years,” said Anil Kothuri, chief executive officer, Fedfina. “Some six months back, AUM was about ₹1,500 crore,” he said.

Private equity firm TrueNorth-backed Fedfina plans to achieve its target by launching new products, entering new cities, expanding its network and servicing under-penetrated areas. For this, it would set aside ₹100 crore.

First in the line would be introduction of unsecured lending to small businesses in major metros and nearby cities with an average ticket size of ₹30 lakh and home loans of up to ₹8 lakh. These products would be launched by April 2019.

Besides, Fedfina is in talks with two public sector banks and a private bank to provide enhanced loans to its customers through a joint venture firm.

“Right now, we have a limitation for extending loan beyond a certain limit. This can be done away with by joining hands with major banks. We will lend 20% and rest by others. The customers will also get benefit as loans will be provided on weighted average method. This should happen soon,” he said.

In the next three years, the non-banking financial services company proposes to ramp up its branch network from 140 to 500, strengthen the employees base from 800 to 3,000 and enter central and western regions soon.

Fedfina commenced its operations during 2010 dealing with gold loans and loans against property. Last year, it earned a revenue of ₹31.5 crore and this year, it plans to touch ₹38 crore. It has a non-performing assets of less than 1%.

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Printable version | Mar 31, 2020 1:59:37 AM | https://www.thehindu.com/business/Industry/fedfina/article26324057.ece

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