Indostar Capital Finance Ltd is planning to reduce its corporate loan book to less than 10 per cent of Assets Under Management (AUM) by March 2022 from 22 per cent as at March-end 2021.

As part of its plan to build a 100 per cent retail company, the non-banking finance company (NBFC) increased the share of retail finance (commercial vehicle/CV finance, SME finance and housing finance) in AUM to 78 per cent as at March-end 2021 against 71 per cent as at March-end 2020.

Total AUM came down about 13 per cent year-on-year (yoy) to stand at ₹8,398 crore as at March-end 2021 from ₹9,690 crore as at March-end 2020, as per the NBFC’s investor presentation.

Also read: IndoStar Capital Finance plans to focus exclusively on retail lending

Of the disbursement of ₹863.50 crore in Q4FY21 (up 18 per cent yoy), 98 per cent was to the retail segment and only 2 per cent was to the corporate segment, it added.

In its outlook for FY22, Indostar Capital,whose promoter and promoter group include BCP V Multiple Holdings Pte Ltd (52.06 per cent stake) and Indostar Capital (38.47 per cent), said it has substantial growth capital to pursue calibrated growth. It will focus on high yield used CV & affordable housing.

“Brought Brookfield (BCP V Multiple Holdings Pte. Ltd) as partner with ₹1,225 crore primary capital (in May 2020) and strengthened capital adequacy and liquidity. Robust equity, comfortable liquidity...form the foundation for future growth ahead,” the presentation said.

Meanwhile, the standalone net loss of Indostar Capital Finance narrowed to ₹312 crore in the fourth quarter of FY21 against ₹420 crore in the year ago period.

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