Village Financial Services to expand to Tripura, Sikkim, Odisha and Uttarakhand

KOLKATA: Micro lender Village Financial Services said it would start doing business in four more states this year, with banks beginning to loosen purse strings for microfinance companies creating fresh growth opportunities.

Village Financial Services Managing Director Kuldip Maity said that the MFI would soon launch operation in Tripura and subsequently expand to Sikkim, Odisha and Uttarakhand.

"As Bandhan has turned into a bank, banks that used to lend to Bandhan are looking at other MFIs for lending. This has created growth opportunity for us," Maity said Tuesday.

The Kolkata-based MFI is present in Bihar, Jharkhand, Assam, besides West Bengal at present.

Maity said that his company has raised Rs 180 crore of bank loans this fiscal. The MFI is also looking to raise debt from other investors to diversify resources.