Bulk of Bharat Financials growth is going to come from fresh customer acquisition and the increase in ticket size is going to be an incremental contributor, said MR Rao, MD & CEO of the company.
“Our growth is always based on fresh customer acquisition by penetrating deeper into rural areas,” Rao said.
Rural wages have been rising, but at a falling pace this year and the rise has dipped to 3-3.5% compared to 6% in better part of 2017.
“Microfinance is a business where there is a huge demand-supply gap; the demand is huge and supply is limited, while the statistics could be showing there has been a dip in rural wages, it is not reflecting in our off take demand on the ground level,” said Rao.
Demand for loans continue to remain high, he said.
Repayment rate is at 99.8% for loans disbursed after January 2017, he added.