Bajaj Finance, which is into consumer and SME (small and medium enterprises) financing, is eyeing 25-30% growth in revenue in 2012-13 driven by healthy loan demand.
The non-banking finance company, which reported total revenue of Rs 2,170 crore in 2011-12, provides loans for consumer durables, two-and-three wheelers, personal loan in consumer finance segment and also offers business loans, mortgage and loan against securities to SMEs. The company also has exposure in commercial lending construction and infrastructure finance.
“The consumer finance and SME business will grow faster than the commercial lending business,” said Rajeev Jain, CEO, Bajaj Finance. “We expect the SME business to grow in the range of 30-35%, consumer finance in the range of 20-25% while commercial lending may grow between 10-15%. Overall, we should be able to grow between 25-30% in the current financial year.”
The SME vertical contributes 45% to the total revenue, consumer finance 40% while commercial lending contribution is 15%.
The company expects around 25% growth in disbursals, which stood at Rs 15,797 crore in 2011-12, in the current financial year. “We expect disbursals of loans to cross Rs 20,000 crore mark by the end of the current financial year,” he said. The company’s disbursals stood at Rs 9,435 crore in 2010-11.
So far the company witnessed lower than expected growth in the two-and-three wheelers financing but demand in consumer finance has been strong so far. “In August, the demand for consumer durable loans was strong and the momentum is expected to continue as the festival season is about to start,” said Jain.