Edelweiss Financial Services will invest Rs 700-800 crore per annum as capital in its retail lending business.
The company’s target is to grow its SME, mortgage, and agriculture loan book. It is expected to use the proceeds from its recent qualified institutional placement (QIP) to invest in this business.
Edelweiss expects to have a lending business of Rs 4,000-Rs 5,000 crore each year in the retail segment, comprising housing, small and medium sized enterprises.
The company will to use the proceeds to augment long-term resources, fund growth and expansion, maintain capital adequacy, and consolidate its subsidiaries.
The branches in its network are expected to grow to 150 by March 2018 from the present level of 80.