Despite robust growth in its MSME loan book, Aditya Birla Capital Ltd (ABCL) said on Wednesday that sustaining 46 per cent growth in advances at its non-banking finance subsidiary Aditya Birla Finance will be difficult. However, the NBFC has all the building blocks in place to scale up its business.
Responding to a query on whether or not the NBFC would be able to repeat the growth performance (46 per cent loan growth), Vishakha Mulye, Chief Executive, ABCL, said, “Sorry cannot make any forward looking statement. But yes, 46 per cent is a large number. It is difficult to maintain that kind of thing.” Aditya Birla Finance’s loan book grew by 46 per cent year on year to Rs 80,556 crore at the end of March 2023.
“We have created size and scale in the business and see immense opportunities in the market. All the building blocks are in place. So we do not see why it shouldn't grow robustly,” Mulye said.
Aditya Birla Finance formally flagged-off Udyog Plus, a new B2B digital platform for MSMEs providing solutions including financing, protection, investments and advisory. It has already had 5,000 SMEs customers register on its platform since the launch in March.
MSME loans, which account for 50 per cent of total lending, are expected to get thrust with the B2B platform. Capital wouldn't be a constraint for growing the lending business in a risk-calibrated manner, Mulye added.
ABCL, the holding entity for financial services businesses, is raising up to Rs 3,000 crore via equity for its lending and insurance businesses. The company, however, did not elaborate on the extent of investment that would be made in the NBFC.
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