Pure-play electric vehicle (EV) financing non-bank lender Mufin Green Finance is aiming to grow its loan book to Rs 750-850 crore by the end of current fiscal, from Rs 350 crore as of July-end, CEO Pankaj Gupta told FE.
Mufin Green Finance is the largest pure-play EV financing non-banking finance company (NBFC) in India, claimed Gupta. The largest portion of the non-bank lender’s overall advances are extended towards financing e-autos, followed by electric 2-wheelers and 4-wheelers, among others.
In order to expand its loan book, the NBFC is planning to extend its vehicle sales number from 2,000 currently to 3,000-4,000 per month, Gupta said. The NBFC’s overall gross non-performing asset (GNPA) ratio currently stands at 2.5% but as its loan book grows in size, the GNPAs are expected to moderate further to below 2%.
When asked whether the NBFC is intending to offer non-EV based loans in future, Gupta said it may offer more renewable sector related loan products, in the hydrogen and solar category, but it will not shift its focus from the environment friendly loan products.
Mufin Green Finance is also aiming to get listed on the National Stock Exchange in the current fiscal. The NBFC is already listed on the Bombay Stock Exchange and its shares ended trading 5.8% higher at Rs 54.86 rupees on the bourses on Friday.
“We are in the process and as per compliance rules we are eligible for the same. We are hopeful that we will make our best effort to get listed on NSE (in FY24),” he said.
Lastly, media reports say that the Centre is examining a proposal to include retail lending to the EV ecosystem as part of the banks’ PSL obligation to increase credit flow to the sector. Gupta says if the Reserve Bank of India (RBI) approves such loans to be classified under the priority sector lending (PSL) category, large government backed banks and more NBFCs could start offering exclusive EV loans. EV loan categorisation under the PSL area would also lead to lower borrowing cost for EV financing lenders, he said.
