Fusion MicroFinance to open 300 branches this year

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Delhi-based non-banking lender, Fusion MicroFinance, is targeting growth of around 25% in assets under management (AUM) and expects net interest margin (NIM) to stabilise in the range of 11.75% to 12% during April-March 2024-25.

Devesh Sachdev, MD & CEO said the lender will expand its network by 18-20% this year by opening around 300 more branches.

Fusion added 211 branches in FY24, taking the total count to 1,297 branches nationwide.

Sachdev said the credit expenses have decreased and will remain under 3% for FY25.

“We are focused on growing our microfinance and micro, small and medium enterprises (MSME) book and on the way, we may look at other products as per requirement of our customer and the geographies where we operate. But there is no such plan to go the small finance bank (SFB) route or banking route right now.,” he said.

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Fusion MicroFinance’s January-March profit grew 16% over last year to ₹133 crore led by expanding business operations and enhanced earnings. NIM was at 11.59% versus 10.57% last year.

Disbursals for the quarter were at ₹2,953 crore, up 24% over last year.

AUM expanded 24% to ₹11,476 crore as at the end of March.

Provisions rose sharply, up nearly 72%, to ₹119 crore. 

The market capitalisation of Fusion Micro Finance is around ₹5,055.24 crore. Its shares have gained close to 15% in the past year.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow