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Analyst Meet / AGM - Analyst Meet

Targets loan growth of 50% for next 2-3 years

Bharat Financial Inclusion

03-Nov-2016, 10:57
Bharat Financial Inclusion conducted an analyst meet on 02 November 2016 to discuss its financial results for the quarter ended September 2016. MR Rao, MD& CEO of the company addressed the meet:
Highlights

The gross loan book excluding the states of Andhra Pradesh and Telangana surged 66% to Rs 9046 crore at end September 2016 from Rs 5462 crore at end September 2015
Loan disbursements jumped 51% to Rs 4016 crore in Q2FY2017 over Rs 2665 crore in Q2FY2016. About 79% of the disbursements were contributed by the rural segment.
The company has maintained the PAT guidance of Rs 450 crore for FY2017
As per the company, the cross-sell business would contribute about 9% to PAT in FY2017 similar to FY2016.
The loan ticket size of the company is lowest in the industry. The company does not have loan growth concerns for next couple of years.
The company is targeting loan growth of 50% for next 2-3 years. About 30% growth is expected to be contributed by new customer addition, while 10-15% growth would come from ticket size and duration change.
The company expects RoE to improve to around 25% by Q4FY2017 and stabilize around that level.
The company would continue to focus on joint-liability group (JLG) model for AUM growth and may not venture into the individual lending or higher ticket sizes.
The company do not expect any lending rates cut in the near term, while expects margins to stabiles around current level.
The opex witnessed pressure on account of recruitment of about 2500 loan officers. The company does not expect fresh recruitment ahead, while hopes opex to AUM ratio to decline below 6% in H2FY2017.
With the fresh recruitment, the company expects to raise client base to 72 lakh by end March 2017.
The company expects pressure from ESOP expenses of Rs 14 crore in H2FY2017 on overall expenses.