Ambit Finvest, the non-banking finance company of the Ambit group, targets a 30% loan growth this fiscal, from 22-23% at present, because of higher demand during the festive season and the boost from GST rate rationalisation, chief executive officer Sanjay Agarwal said.
Growth Drivers and Market Outlook
The non-bank lender is focused on lending to small and medium enterprises and micro, small and medium enterprises (MSMEs).
“Initially, we had set a target of achieving around 30% growth this year. While the early momentum was steady, we are confident that growth will accelerate meaningfully following the GST rate reduction. We expect to touch 30–40% in the coming months and maintain around 30% growth for the full financial year,” Agarwal said.
He expects the demand for two-wheelers and four-wheelers to grow in coming months.
Co-lending and Risk Management
Regarding the the co-lending business, Ambit still awaiting clarity from the Reserve Bank of India on certain guidelines such as the blended interest rate, Agarwal said. The lender is keen on fast resolving the issue as almost 25% of its volumes come from the co-lending business.
“We see co-lending as a strong long-term opportunity. Some operational matters are being streamlined. Once these are resolved, co-lending activity is poised to expand significantly from the next year,” Agarwal said.
Currently, the non-bank lender has tie-ups with four banks for their co-lending businesses.
Agarwal said that delinquencies have gone up in the unsecured space, particularly in the small-ticket size of less than Rs 15 lakh.
“Across the industry, especially in small-ticket unsecured lending, there have been shifts, as some players realign their strategies and banks recalibrate exposure. Our portfolio, however, continues to demonstrate resilience, and we believe this disciplined approach will help us capture greater market share as the sector stabilises,” he said.
The company has taken measures to shift towards loans of more than Rs 25 lakh.
Agarwal said 15% of its total book is unsecured and the small-ticket loans form a very small part of the unsecured portfolio. “With MSMEs, we are optimistic that the coming year will bring stronger recovery and renewed scale of activity, supported by improved credit flows and a healthier demand environment.”
Ambit Finvest does not see any immediate need to raise capital.
The lender reported a net profit of Rs 10.81 crore for the April-June quarter and had assets under management of Rs 4,550 crore.