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Bloomberg
One of India’s top microlenders is seeking about 60 billion rupees ($900 million) from banks and non-bank lenders to fund loan growth as demand from borrowers living in small towns and rural areas bucks the slump in the nation’s overall credit offtake.
Satin Creditcare Network Ltd, whose assets exceed 70 billion rupees, needs the cash to meet its credit-growth target of about 40 percent for the year ending, Chairman HP Singh said. Its shares have handily beaten an index of small-cap stocks this year as the lender’s credit profile has remained largely unscathed amid the lingering shadow-banking crisis.
Not expecting rise in overall funding costs as major part comes as loans from banks and non-bank lenders. Credit ratings of Satin haven’t seen a downgrade by any of the four rating companies as the lender doesn’t rely on mutual funds for financing requirements.
Loans at microfinance companies have been growing at a faster pace than commercial banks over the last six years as their customers are borrowers in rural areas.