New Delhi, March 4th (PTI) Leading credit distributor Andromeda plans to increase its loan disbursement volume by 20 percent to Rs 30,000 billion over the next fiscal year and will expand its network of branches.
V. Swaminathan, CEO Andromeda & Apnapaisa, said the company’s loan disbursement this fiscal year rose from Rs 18,000 billion last year to Rs 25,000 billion despite the COVID-19 pandemic.
“When the lockdown began in April last year, our loan volumes collapsed to near zero. The months of April, May and June were particularly bad. The volumes rose steadily from October, ”he told PTI.
When the unlock process began, he said the company’s business also began to recover, seeing its highest monthly loan disbursement of around Rs.2.200 billion in January 2021.
“This was supported by growth in home loan issuance, which more than doubled compared to the same period last year. Unsecured personal loans can also be expected to return to their pre-COVID level in view of the upheaval in the segment, “he said.
The company expects home loans to account for roughly half of the total volume of loans disbursed in the next fiscal year.
Swaminathan said the 30-year-old company has aggressive plans to expand and increase its loan disbursement portfolio.
“The goal for this year is to ensure that we fully normalize our operations on a full year basis. The expectation for the next year is a loan disbursement of Rs 30,000 crore for the year,” he said.
He said expansion is planned on multiple fronts, including building the branch network to cover more tier 1 and tier 2 locations.
Swaminathan said a major focus will be on building a strong data analytics and digital platform that can handle the huge surge in digital traffic caused by the pandemic.
The CEO said that Andromeda has built an extensive stationary network with over 100 locations, over 200 branches, over 1,500 employees and nearly 3,000 partners.
“The company plans to open about 100 more stores in the next fiscal year and gradually hire more than 600 employees,” he said, adding that the company can fund its growth plans entirely from internal provisions.
In terms of the lower interest rate system, Swaminathan said, it means borrowers will have to pay lower EMIs.
“This resulted in increased demand for housing units, as well as balance transfers. The move by several state governments to lower stamp duty on housing registrations has also encouraged potential homeowners waiting on the sidelines to take the plunge,” he added.
He said that certain state governments’ cuts in stamp tax had resulted in unexpected profits from higher unit sales.
The lower stamp duty regime should be maintained for at least another quarter, he said. PTI NKD MKJ
Disclaimer: – This story was not edited by Outlook staff and is automatically generated from news agency feeds. Source: PTI