Reliance Commercial Finance will increase focus on SMEs to achieve its target credit growth rate of 15-16 percent this fiscal.
"We are expecting 15-16 percent credit growth this fiscal, which is in line with loan growth in the industry," Reliance Commercial Finance chief executive K V Srinivasan told PTI on the sidelines of an event here today. But 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 2 and 3 cities, he said.
"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 2 & 3 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.
Reliance Commercial Finance offers a suite of financial solutions including mortgages loans, vehicle loans, SME loans, loans against investments, construction finance, infrastructure loans and microfinance.
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