Satin Creditcare eyes 15-20% AUM growth in FY23, says CMD

Singh said the merger of Satin Creditcare’s two wholly owned subsidiaries, Taraashna Financial Services with Satin Finserv, was expected to be completed by March-end.

Singh said the merger of Satin Creditcare’s two wholly owned subsidiaries, Taraashna Financial Services with Satin Finserv, was expected to be completed by March-end.
Singh said the merger of Satin Creditcare’s two wholly owned subsidiaries, Taraashna Financial Services with Satin Finserv, was expected to be completed by March-end.

By Piyush Shukla

Satin Creditcare Network, whose board approved raising Rs 225 crore on Monday, will use these funds to generate 15-20% year-on-year growth in its assets under management (AUM) in 2022-23, chairman and managing director HP Singh told FE.

“We are looking at about 6-8% [AUM] growth for this year (FY22) since we have lost a quarter technically if you look at the lockdown and everything. But FY23 what we are looking at is full-blown growth of about 15-20%,” Singh said.

At the end of September, Satin Creditcare’s AUM stood at Rs 7,381 crore, down 3.7% on year. Of this, 9.7% comprised of non-microfinance loans. The share of non-microfinance (non-MFI) portfolio will increase to 15% by FY23-end, Singh said. “The overall strategy is that in the next five-six years, at least one-third of our book should comprise of secured lending and which is non-MFI,” he said.

In terms of collections, Singh said broadly the trend has been similar to pre-Covid levels and if there is no significant disruption, collections will stay at 97-98%.

Singh said the merger of Satin Creditcare’s two wholly owned subsidiaries, Taraashna Financial Services with Satin Finserv, was expected to be completed by March-end.

He said going ahead, Satin Housing Finance will only work with house mortgage loans, while all new asset classes, including the present business correspondent business of Taraashna Financial and micro, small and medium enterprises loans, will be on Satin Finserv’s loan book.

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