Capri Global Capital Limited , operating under the brand name 'Capri Loans', has announced a special three-day customer offer for its Gold Loan business, celebrating the division's third anniversary. The offer, running from August 25-27, aims to attract new customers at the onset of the festive season, beginning with Ganesh Chaturthi.

Attractive Offer Details

The anniversary campaign features Gold Loans starting at an attractive rate of 0.92 per month per Rs. 100. This competitive pricing is complemented by additional benefits, including:

• Loan Auto-pay facility to prevent delayed payments
• Flexible payment options for customer convenience
• 100% insurance cover on pledged gold for added security

Impressive Growth and Reach

Since its inception three years ago, Capri Loans' Gold Loan business has experienced significant growth:

• Over 825 active branches across 10 states and Union Territories
• Gold Loan Assets Under Management (AUM) exceeding Rs. 9,500.00 crores
• Served more than 9 lakh customers to date

Executive Insights

Ravish Gupta, Chief Business Officer (Gold Loan) at Capri Loans, commented on the milestone: "In the last three years, our Gold Loan business has grown steadily on the foundation of customer trust. We have constantly endeavoured to provide transparent, flexible and affordable financial solutions to the customers, and we are committed to provide the best services to them."

Broader Impact and Strategy

The company's focus on Gold Loans aligns with India's broader financial inclusion goals, providing access to credit for rural, small and medium enterprises, and underserved segments of the population. Capri Loans aims to redefine the Gold Loan experience by combining customer-friendly products with robust digital systems and personalized service.

Company Overview

Capri Global Capital Limited has established itself as a well-diversified retail-focused Non-Banking Financial Company. As of June 30, the company boasts:

The company primarily operates in Northern and Western India.

Besides Gold Loans, Capri Loans offers a range of secured and collateralized loans, including MSME Loans and Construction Finance. The company also provides Housing Loans through its wholly-owned subsidiary, Capri Global Housing Finance Limited (CGHFL).

This special anniversary offer not only celebrates the Gold Loan division's success but also reaffirms Capri Loans' commitment to making financial solutions more accessible, affordable, and secure for Indian households.

Capri Global Capital Limited (CGCL) has announced strong financial results for the first quarter, marking significant growth across key metrics and strategic initiatives.

Impressive Financial Performance

The company reported a substantial 42% year-on-year growth in consolidated Assets Under Management (AUM), reaching INR24,754.00 crore. This growth was primarily driven by robust performance in the retail segment, particularly in gold loans and housing finance.

Net Interest Income (NII) saw a healthy increase of 38% to INR416.00 crore, while Profit After Tax (PAT) surged by an impressive 131% to INR175.00 crore. The company's cost-to-income ratio improved significantly to 46% from 65% in the previous year, reflecting enhanced operational efficiency.

Strategic Capital Raise

A key highlight of the quarter was the successful completion of a Qualified Institutions Placement (QIP), raising INR2,000.00 crore in primary equity capital. This marks CGCL's first QIP in over a decade and received strong interest from both domestic and foreign institutional investors.

Segment-wise Performance

Gold loans emerged as a standout performer, with the AUM in this segment growing by 69% year-on-year. The housing finance portfolio also showed robust growth of 32% year-on-year.

Asset Quality and Risk Management

Despite the rapid growth, CGCL maintained a focus on asset quality. The gross Stage 3 asset ratio stood at 1.7%, with a net Stage 3 ratio of 1%. The company reported an increase in credit costs to INR81.00 crore, primarily due to higher ECL provisions and some slippages in the MSME segment.

Expansion Plans

CGCL announced plans to add 200-250 branches this year, with a focus on expanding into Southern India markets including Tamil Nadu, Andhra Pradesh, Karnataka, and Odisha. The company aims to establish 700-800 branches over the next three years to support its growth trajectory.

Technology and ESG Initiatives

The company continues to invest in technology and data science capabilities, spending INR26.00 crore in the quarter on various initiatives. CGCL also received a strong ESG rating of 69 from NSE Sustainability Rating Analytics, placing it ahead of most listed NBFCs on the NSE.

Future Outlook

Management has maintained guidance for 30% AUM growth and expects a Return on Average Equity (ROAE) of 13.5-14% for the current fiscal year. Looking ahead, the company aims to achieve:

• Return on Average Assets (ROAA) of about 4%
• ROAE in the range of 16-17%

Rajesh Sharma, Managing Director of Capri Global Capital Limited, commented on the results, stating, "Our Q1 has set a solid tone. The addition of INR2,000.00 crore capital raise gives us the financial strength to accelerate growth across lending and new verticals. Backed by a secured book, healthy asset quality, and solid technology infrastructure, we remain on track to grow 30% annually and deliver sustainable ROAE of between 16% to 18% and ROAA in the medium term to 4% and even going up to 4.5%."

With its strong performance, strategic capital raise, and clear growth plans, Capri Global Capital Limited appears well-positioned to capitalize on opportunities in the financial services sector while maintaining a focus on asset quality and operational efficiency.