IIFL Finance is looking to raise around Rs 20,000 crore in FY24 through various routes, including bank loans, bonds and external commercial borrowings, Nirmal Jain, managing director, said.
Some of these borrowings will go towards repaying earlier liabilities, primarily from banks. “We will have to renew certain loans and bonds that are maturing,” Jain said, adding that the fundraising plan is dynamic to meet various liability requirements.
As on March 31, IIFL Finance’s total borrowings stood at `39,604 crore. The average cost of borrowing in FY23 was 8.8% and the company expects the cost to remain the same in the current year.
Jain expects IIFL to disburse around `15,000-16000 crore of loans in the current fiscal and is targeting a net interest margin of 6-7%. In FY23, the average portfolio yield was 16.6%.
The company aims to increase its return on assets to around 4% in the next two years from 3.3% as on March 31. “In the last two years, we aggressively expanded the branch network, which pushed up the cost-to-income ratio. We have paused the branch expansion and will make the existing branches more productive. That will bring down the cost-to-income ratio,” he said.
The lender continues to focus on gold loans, home loans, digital business loans, and microfinance loans. “Together, these segments can deliver the 25% growth target, so there is no reason for us to look beyond this at this point of time, ” Jain said.
The company, Jain said, is adequately capitalised and there are no immediate plans for an initial public offering. “We will stick to affordable housing. Our current focus is on a ticket size of `15 lakh and we may go to `20 lakh, but nothing will dramatically change,”Jain said.