Micro-finance institution Satin Creditcare is targeting to improve its credit cost to near 4% from 4.23% in Q3, according to chairman and MD HP Singh. As reported by The Hindu BusinessLine, the company's guidance for FY26 was to post less than 4.6% credit cost, which stands at 4.52% in the 9MFY26 period. Singh indicated that the company will keep the momentum going in Q4 and expects to be closer to 4% when the whole year ends.
The company reported 20% sequential growth in disbursements, though Singh emphasized focusing on yearly growth of 10-15% year-on-year. According to the interaction reported by The Hindu BusinessLine, Singh stated that the first two quarters are typically tepid due to heat waves and monsoon, with the company maintaining cautious growth with focus on portfolio quality. The loan rejection rate stands at 65%, which Singh considers good enough as the company wants to acquire customers who pass underwriting standards.
Margins are expected to remain stable as the company has reduced cost of funds by 50 basis points. As reported by The Hindu BusinessLine, Singh indicated that if there is another repo rate cut, the company will consider passing it on to borrowers due to healthy margins. Regarding the MFI funding scenario, Singh noted that while there are challenges for small and mid-sized MFIs on the ground, the situation is opening up, with expectations that credit guarantee scheme implementation will encourage lenders to open up funding.
The company has opened 203 branches in the last quarter and is on track to meet its target of launching 400 branches in the current fiscal. According to The Hindu BusinessLine, in 9MFY26, the company has opened 363 branches. Additionally, the company's application for Alternative Investment Fund (AIF) launch is with SEBI, with the application made in December.
