Shalibhadra Finance is aiming for a significant growth target of ₹500 crore in Assets Under Management (AUM) by the fiscal year 2029, marking a 127% increase from its current levels. The company plans to achieve this through new product launches, geographic expansion, technology investments, and an expanded branch network.
The company's management believes that its balance sheet, with a net worth of approximately ₹172 crore, is robust enough to support this ambitious growth. Future expansion is expected to be funded largely through debt instruments such as term loans and non-convertible debentures (NCDs), minimizing the need for immediate equity dilution.
A key growth driver will be Shalibhadra Finance's entry into the Micro Loan Against Property (Micro LAP) segment, focusing on loans below ₹5 lakh. This segment is relatively underpenetrated by larger lenders and aligns with the company's asset-backed lending strategy. Additionally, the company plans to diversify its product portfolio with home loans, property loans, tractor loans, and salaried personal loans.
Maintaining asset quality remains a priority for Shalibhadra Finance. The company reported Gross Non-Performing Assets (GNPA) at 2.94% and Net Non-Performing Assets (NNPA) at 1.17%, attributing this performance to its disciplined underwriting framework and extensive experience in retail lending.
Technology investments are also a strategic focus, with the company investing in digitisation and automation to enhance operational efficiency and risk management. Shalibhadra Finance is exploring AI-driven initiatives to boost customer acquisition and productivity.
The company currently operates 61 branches and plans to expand to 70 by 2026, with a longer-term goal of reaching 100 branches in the next three years. Expansion into Karnataka and Goa has commenced, with Rajasthan and Madhya Pradesh identified as future growth markets.
Background
Shalibhadra Finance has been a regional player in the retail lending sector for over three decades. Its strategic focus on secured lending and local market expertise has allowed it to maintain strong asset quality. As the rural and semi-urban credit ecosystem in India evolves, the company's growth plans are aligned with broader market trends.
As India's rural and semi-urban credit ecosystem evolves, Shalibhadra Finance's strategy of secured lending, local market expertise, and technology adoption positions it well for transformation into a larger retail finance franchise.
