Disbursements at pre-note ban levels, says Bharat Financial
MUMBAI: Microfinance lender Bharat Financial Inclusion on Monday said that its loan disbursements during the month of February have reached levels last seen before demonetisation came into effect.
In a note to investors and analysts, the company said it continues to disburse in districts recording repayment activity. It has not been able to collect repayments in several other districts due to demonetisation and the ongoing electoral processes in some states.
In February, the company said it has disbursed Rs 1,358 crore, up from Rs 905 crore in January and Rs 898 crore in December. Disbursements as a percentage of collections rose to 122% in February, up from 71-72% in both January and December. “Demonetisation coupled with the elections have impacted our collections in some districts of Uttar Pradesh and Maharashtra,“ said a Bharat Financial spokesperson.
“We expect recovery happening over the next 3-4 months. At the same time, we are hopeful of achieving 50% growth in loans for this year."
“Demand for loans exists and we are addressing it," said the executive.
The company's collection efficiency improved to 98.2% for dues between November 11 and 30 with customers repaying after a lag. It expects the metric to improve further after the payment of the remaining dues for November, December and January.
The company has a loan disbursement cap for each state pegged at 15% of the overall disbursement. This and its wide reach across 17 states helped Bharat Financial to recover from the impact of demonetisation.
On the balance sheet portfolio, the company has not received collections on loan of Rs 306 crore over last eight weeks, half of it from Uttar Pradesh and Maharashtra. It expects collections to improve in next 2-3 months.
“We are doing everything permissible under the RBI guidelines to recover the loans," the spokesperson added.
In a note to investors and analysts, the company said it continues to disburse in districts recording repayment activity. It has not been able to collect repayments in several other districts due to demonetisation and the ongoing electoral processes in some states.
In February, the company said it has disbursed Rs 1,358 crore, up from Rs 905 crore in January and Rs 898 crore in December. Disbursements as a percentage of collections rose to 122% in February, up from 71-72% in both January and December. “Demonetisation coupled with the elections have impacted our collections in some districts of Uttar Pradesh and Maharashtra,“ said a Bharat Financial spokesperson.
“We expect recovery happening over the next 3-4 months. At the same time, we are hopeful of achieving 50% growth in loans for this year."
“Demand for loans exists and we are addressing it," said the executive.
The company's collection efficiency improved to 98.2% for dues between November 11 and 30 with customers repaying after a lag. It expects the metric to improve further after the payment of the remaining dues for November, December and January.
The company has a loan disbursement cap for each state pegged at 15% of the overall disbursement. This and its wide reach across 17 states helped Bharat Financial to recover from the impact of demonetisation.
On the balance sheet portfolio, the company has not received collections on loan of Rs 306 crore over last eight weeks, half of it from Uttar Pradesh and Maharashtra. It expects collections to improve in next 2-3 months.
“We are doing everything permissible under the RBI guidelines to recover the loans," the spokesperson added.
