NBFC firm to invest Rs 100 cr for scaling up branch network

With a roadmap to strengthen its network to 500 branches from the current 140, it looks to significantly scale up operations in the rest of the country. Fedfina has set up 25 branches in the current fiscal. It is looking to add another 125 new branches in the next 12 months across the country. The firm has allotted a budget of Rs 100 cr to materialise the expansion goals and drive growth.

“TN will continue to be a strong focal point for the firm, with several high-performance branches in Chennai. Along with its gold loan business, Fedfina is looking at also growing its mortgage, unsecured loans and other loan products in the state. We also plan to open 25 new branches in the state as part of this expansion plan,” Anil Kothuri - MD and CEO, Fedfina said here.

“One third of our branches are based in TN which makes it a crucial market for us. The well-developed credit culture here and financially literate set of borrowers will ensure greater credit penetration in the state,” he sought to point out.

Noting that Fedfina caters to the needs of the small self-employed individual across small town India, he said “this is a rapidly growing, yet financially underserved segment of society. We aim to scale up our balance sheet by 10 times in the next five years by offering products which recognise the financial stature of these customers and thereby providing appropriate loan amounts.”

Private equity firm True North recently acquired 26 pc stake in the firm. Along with growth capital, True North is supporting Fedfina’s plans to transform into one of India’s most customer centric and admired financial institutions. Fedfina employs over 800 people and operates across four states. Its product lines include gold Loans, loan against property and wholesale finance.