Mumbai : Capri Global Capital Ltd (CGCL), a diversified NBFC in the MSME and Affordable Housing sector, has reported an AUM of Rs. 40.35 bn in FY20.
MSME continue to be the focussed sector contributing to around 51% of total AUM. CGCL has active relationships over 12,500 businesses ending FY20 across several states in India ranging from retail outlets to small manufacturing units, traders to private schools. The Company continues focussing on Tier 3 & 4 cities. The well-established and in-depth knowledge of micro markets has helped CGCL to maintain a good asset quality and keep the loan book granular. With the current market scenario, henceforth, there will be a slower pace of disbursals in MSME due to slowdown in business environment and resultant tighter credit policy.
The Housing Finance contributes to around 22% of the total AUM. Under the Affordable Housing Finance business targeting Tier 2 & 3 cities, the company has already empowered ~10,200 families to realise the dream of owning their own home. CGCL has entered an MOU with NHB as a Primary Lending Institution (PLI) to facilitate subsidy to its qualifying borrowers under the CLSS.
Commenting on the outcome, Mr. Rajesh Sharma, Managing Director, Capri Global Capital Ltd. explained, “Regardless of the economic headwinds CGCL has witnessed a healthy growth supported by yields improvement and reduction in cost to income ratio. Our well-established and in-depth knowledge of micro markets and our retail focussed strategy has successfully reflected in lifetime high Return on Equity reported during FY20. The Company is adequately capitalised maintaining capital adequacy ratio at 38%. We continue focussing on expanding our retail book. Successful adoption of low-cost technology-driven hub & spoke model has assisted us in tapping underserved markets in cost-efficient manner and optimizes turn-around times.”
“With the lockdown, we have re-arranged our processes to ensure business continuity for the existing customers. The sales and credit teams are actively communicating with customers having high-risk business profiles to jointly evaluate the best possible solution and mitigate the crises together. Capri Global Capital Limited supports its customers, clients, employees, and communities in this extraordinary time using the resources, expertise, capital, and data to help.” Mr. Sharma added.