Avanse Financial Services (AFSL) expects to end the current financial year with a loan book of ₹4,400 crore to ₹4,600 crore against ₹2,926 crore as at March-end 2021.

The overall financing opportunity in education is looking reasonably positive after muted growth in FY21, according to Amit Gainda, CEO of the education-focussed non-banking finance company (NBFC).

Olive Vine Investment, an affiliate of the Warbug Pincus Group and International Finance Corporation (IFC) have 80 per cent and 20 per cent stake, respectively, in AFSL.

Loan growth

Gainda observed that there has been a good uptake in loans in the first half (April-September) of the current financial year (FY22), with the loan portfolio growing by ₹660 crore to ₹3,586 crore as at September-end 2021.

Last year, loan disbursement was muted because of Covid, with students unable to travel overseas due to pandemic-related restrictions. AFSL’s loan portfolio had de-grown about ₹40 crore in the first half of FY21 to ₹2,761 crore as at September-end 2020.

Gainda said Avanse works across the entire spectrum of education segment, including providing loans for school fees, undergraduate/post-graduate studies (both in India and overseas) and education institutions.

“Our mission is to make education financing seamless and affordable . We remain segment focused as it allows us to build a unique selling proposition, leading to far better valuation from stakeholders, including shareholders, perspective,” he added.

Gainda noted that AFSL has already clocked net profit of ₹31 crore profit in the first half of FY22 against ₹38 crore for the entire FY21.

As at September-end 2021, the NBFC’s net stage 3 (credit impaired) assets level had improved to 0.44 per cent of net advances against 0.89 per cent as at September-end 2020.

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