He said the Kolkata-headquartered NBFC-MFI raised around Rs 800 crore in the current financial year ending this month.
“Our focus has been on loan book growth and expansion of branches. We are planning to raise around Rs 1,500 crore in the next fiscal,” VFS Capital MD and CEO Kuldip Maity said.
Since MFIs in India, unlike Bangladesh, are not allowed to raise deposits, borrowing costs are high, he said.
“We get access to funds only from banks and NBFCs,” Maity said.
To a query, he said, “VFS does not have immediate plans” to apply for a licence to get a small finance bank (SFB) tag.
The Reserve Bank of India allows such SFBs to raise money from the public.
With a loan disbursement of around Rs 1,300 crore – 1,400 crores, VFS Capital expects to close the current fiscal year.
“We plan to scale up the loan book to Rs 2,500 crore in FY23-24,” Maity said.
In FY22, it reported a loan book of Rs 805 crore.
Dinesh Kumar Khara, the Chairman of the State Bank of India, felicitated six rural women entrepreneurs and MFI borrowers at the event.
With a network of about 280 branches in 14 states, including West Bengal, Bihar, Assam, Jharkhand, Orissa, Madhya Pradesh, Uttarakhand, Chhattisgarh, Haryana, Uttar Pradesh, and Rajasthan, the MFI currently serves approximately four lakhs women borrowers.
“This fiscal, we have opened 30 more branches, mostly in Bihar, MP, and Rajasthan. Our plan is to add 50 branches in FY23-24,” he said, adding that the company continues to explore new locations to serve the unbanked people and expand its footprint as a microfinance institution.