Skip to main content

‘Demonetisation, GST made lending to SMEs easier’

‘Demonetisation, GST made lending to SMEs easier’



MUMBAI: Aditya Birla Finance (ABFL) — the lending arm of Aditya Birla Capital(ABCL) — plans to leverage its recently acquired triple A rating to grow its loan book by 35% with a focus on small businesses. ABCL was created by carving out Aditya Birla Nuvo's financial service business into a separate entity and was listed in September 2017.
Aditya Birla Nuvo was subsequently merged with Grasim Industries. Last month India Ratings upgraded ABFL to IND AAA from IND AA factoring the strength of its new parent.


Speaking to TOI, Rakesh Singh, CEO, ABFL said ABFL has a loan book of Rs 38,900 crore as on September-end and would maintain its growth rate of 35-40% with an increased focus on small and medium enterprises (SMEs). According to Singh, demonetization and the introduction of the Goods and Services Tax (GST) has resulted in formalization for the SME segment making it easier to lend to them.


ABFL has an associate Aditya Birla Housing Finance which does mortgage lending in the group. The company has Rs 6,000 crore balance sheet with individual loans accounting for 60% of the total book. "Our target is the self-employed segment with a focus on credit quality." said Singh.




Of the Rs 38,900 crore loan book, large corporates account for 35%, mid-corporates 17%, retail 9% and SME 25%.


ABFL plans to strengthen its structured lending platform to SMEs across lending categories that are largely untouched by banks and large lenders. The company will add 33 new branches to reach 72 branches by March 2018 to further strengthen its foothold in Tier-II & Tier-III centers and offer lending solutions such as working capital demand loan, lease rent discounting, and supply chain financing solutions.
Labels:
Location: ASTER BILLING SOLUTION, Nandanam,TC-11/415-3, Navodaya Gardens, Nalanchira(po), Parottukonam, Tilak Nagar, Thiruvananthapuram, Kerala 695015, India

Comments

Post a Comment

Popular posts from this blog

How GST will impact the wallet of the common man

How GST will impact the wallet of the common man Since the passing of the GST Constitutional Bill by the Rajya Sabha in August last year, the country has been preparing itself for the new tax regime. The new GST law is India’s biggest tax reform initiative which is expected to improve compliance levels, increase government revenue, and create a common playing field for the businesses by amalgamating a host of central and local taxes. On the face of it, GST seems to be a mixed bag with some of the necessities becoming cheaper, while the others might get more expensive. While in the longer run the Goods and Service Tax might have a favorable effect on most of the sectors of the economy, in the short run, as with the most of the reforms, the benefits seem to be limited. Based on the experience of GST implementation in other countries, India could observe an inflationary impact at the onset of the reform, which might fade away once the legislation sinks in. Things that might g...
Post a Comment
Read more

From GST to Bitcoin, What People in India Googled the Most in 2017

From GST to Bitcoin, What People in India Googled the Most in 2017 Everyone familiar with the World Wide Web falls back on Google to know the answer to – “what is”. In 2017, internet users in India took to Google to ask ‘what is’ on a varied range of topics – from the Goods and Services Tax (GST), a new indirect tax regime introduced in July this year, to Bitcoin, a digital currency that has been around for almost a decade now, but surged in value exponentially this year. Here are the five most searched ‘what is’ questions of 2017 – and quick Google searched answers for them. 1. What is GST? GST is a single tax on the supply of goods and services, from the manufacturer to the consumer. (Photo: Abhilash Mallick/ The Quint ) GST is a single indirect tax that replaced India’s old system of multiple indirect taxes in July this year – making way for a pan-India, comprehensive system. Also Read:  9 Basic Questions About GST You Should Know the A...
Post a Comment
Read more

Relaxation in Return filling Procedure under GST

Relaxation in Return filling Procedure under GST The GST Council in its meeting held on 18th June, 2017 has allowed relaxation in the return filling procedure for the first 2 months viz. July and Aug, 2017. An easy and simple Form GSTR 3B has introduced to be filled by 20th of next month and further time has been allowed for filling GSTR 1 & GSTR 2. The detail Press Release is attached below:- The post  Relaxation in Return filling Procedure under GST  appeared first on  RITUL PATWA & CO, Chartered Accountants .
Post a Comment
Read more