Reliance Commercial Finance eyes 16% credit growth in FY13

Reliance Commercial Finance today said it is targeting growth rate of 15-16 per cent this fiscal with increased focus on small and medium enterprises (SMEs).

“We are expecting 15-16 per cent credit growth this fiscal,which is in line with loan growth in the industry,” Reliance Commercial Finance chief executive K V Srinivasan said on the sidelines of an event here today.

Reliance Commercial Finance offers a suite of financial solutions,including mortgages loans,vehicle loans,SME loans,loans against investments,construction finance,infrastructure loans and micro finance.

However,he added that credit growth depends on the macroeconomic situation.

The company will be sustaining this level of credit growth for the next couple of years,he said,adding the growth driver would be SMEs.

“Nearly 90-95 per cent of our clients are SMEs. We provide finances to entities which focus on productive asset creation like buying machinery and taking initiatives for setting up and growing their businesses,” Srinivasan said.

The company,which is currently present in 65 towns through hub and spoke model,plans to expand its geographical reach in Tier II and III cities,he said.

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“Our intention is to expand the geographical reach. At present,we are servicing through 65 towns through a hub and spoke model. But now we want to grow more and more into the Tier II & III cities,where penetration is limited and which is where actually the SMEs are functioning. We want to expand it to 100 towns over the next two years,” he added.

Meanwhile,the company has joined hands with a research and consulting firm Sustainable Development to groom aspiring SMEs on various business aspects and enable them to elevate their business to the next level,by holding seminars in 12 cities.