Kissandhan raises loan disbursal target to Rs 2,400 crore

KOLKATA: An encouraging outlook on monsoon and improved supply of currency in the system after the temporary impact of demonetisation have prompted non-banking financial company Kissandhan Agri Financial Services to raise its target for loan disbursal more than five times to Rs 2,400 crore for the current financial year.

The company, a subsidiary of Sohan Lal Commodity Management group, had disbursed Rs 457.62 crore in 2016-17. “The higher targets have been taken on the expectation of normalisation of business post demonetisation and good crop inflow post monsoon. Typically, the second half of the year is where we have the kharif arrivals and this is the largest season for us," Sandeep Sabharwal, group CEO of Sohan Lal Commodity Management told ET.

Sabharwal said demonetisation had impacted the NBFC business like any other sector of the economy, but the impact of the exercise is temporary and the structural growth of the sector is intact.

“The disruption in cash flow had temporarily impacted loan repayments. However, the sector has since recovered well and chances of any long-term impact are minimal as the liquidity crunch is cyclical and not structural," he said.