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Leading microfinance institution VFS Capital is looking to raise around Rs 1,500 crore in FY23-24 to support its growth and expansion plans, a top company official said.

The Kolkata-headquartered NBFC-MFI raised around Rs 800 crore in the current financial year ending this month, he said.

“Our focus has been on loan book growth and expansion of branches. We are planning to raise around Rs 1,500 crore in the next fiscal,” VFS Capital MD and CEO Kuldip Maity said.

Since MFIs in India, unlike Bangladesh, are not allowed to raise deposits, borrowing costs are high, he said.

“We get access to funds only from banks and NBFCs,” Maity said.

To a query, he said, “VFS does not have immediate plans” to apply for a licence to get a tag of small finance bank (SFB).

The Reserve Bank of India allows such SFBs to raise money from the public.

VFS Capital is expecting to close the current fiscal with a loan disbursement of around Rs 1,300 crore – 1,400 crore, he said.

“We plan to scale up the loan book to Rs 2,500 crore in FY23-24,” Maity said.

In FY22, it had reported a loan book of Rs 805 crore.

State Bank of India Chairman Dinesh Kumar Khara felicitated six rural women entrepreneurs and borrowers of the MFI at the event.

The MFI currently caters to over four lakhs women borrowers through its network of around 280 branches covering 14 states, including West Bengal, Bihar, Assam, Jharkhand, Odisha, Madhya Pradesh, Uttarakhand, Chhattisgarh, Haryana, Uttar Pradesh, and Rajasthan.

“This fiscal, we have opened 30 more branches mostly in Bihar, MP, and Rajasthan. Our plan is to add 50 branches in FY23-24,” he said, adding that the company, as a microfinance institution, continues to explore new locations to serve the unbanked people and expand its footprint.