Home » Money

Karvy to grow MSME book to beat market lull

Saturday, 17 November 2012 - 9:00am IST | Place: Mumbai | Agency: DNA
Karvy Financial Services is shifting its focus to micro, small and medium enterprises (MSME) to grow its loan book as weak capital markets have deterred lending against securities and commodities, the non-banking financial company’s top executive said.

Karvy Financial Services is shifting its focus to micro, small and medium enterprises (MSME) to grow its loan book as weak capital markets have deterred lending against securities and commodities, the non-banking financial company’s top executive said.

Karvy Financial, a part of the Karvy Group, is targeting a loan book of Rs1,800 crore for fiscal 2013 as against its previous aim of Rs2,000 crore.

“Markets have been very rough. There was a period where stocks were not doing so well and the overall business sentiment was not good. So we held back extending credit,” CEO Amit Saxena said.

“But in SME, micro enterprises, there is absolutely no issue.”
Karvy Financial disburses loans under three segments. It gives loan to buy securities or against securities and commodities. It also lends against gold to micro-enterprises and against property to both micro enterprises and SMEs.

The NBFC is planning to introduce a new product to lend money to MSMEs to buy light commercial vehicles, to tap more business from these segments. The product is expected to be launched by March 2013. Karvy Financial plans to add 40 to 50 new branches to the current 70 in next fiscal in states such as Uttarakhand, Punjab, Haryana, Maharashtra, Andhra Pradesh and Tamil Nadu.


Jump to comments