ICL Fincorp targets pan-India expansion, to double AUM on back of NIDCC mandate
Kolkata: ICL Fincorp Ltd is set to accelerate its pan-India expansion with plans to open 500 new branches over the next two years, including 200 in the current financial year, as the gold loan-focused NBFC seeks to broaden its geographic footprint beyond Southern India and double its assets under management (AUM).
The Chennai-headquartered company, which currently operates around 300 branches primarily across Kerala, Tamil Nadu, Andhra Pradesh, and Odisha, formally entered West Bengal on Tuesday with the inauguration of its first branch in Kolkata.
It plans to open 50 branches across the state this year, including 10 in the city.
“We have always been a South India-centric NBFC. But now, with the NIDCC mandate in place, we’re fast-tracking our nationwide rollout and will reach all states by the end of this fiscal,” said K.G. Anilkumar, Chairman and Managing Director of ICL Fincorp, addressing the press conference after the Kolkata branch launch.
National mandate fuels growth
The company’s aggressive expansion comes in the wake of a recent mandate from the National Industries Development Council Committee (NIDCC), an autonomous government body.
Under this mandate, ICL Fincorp has been designated the national lending partner for various Government of India-backed schemes, particularly in the MSME segment.
Loans disbursed under these schemes will be routed through ICL, significantly expanding its reach and operational scale.
“While we were already eyeing national expansion over the next couple of years, the NIDCC partnership has compelled us to accelerate. We will roll out our nationwide operations by end of June,” Anilkumar added.
West Bengal and beyond
Apart from ICL Fincorp’s expansion in Bengal, its group company Lanceda, a Kolkata-based NBFC acquired in 2019-20, will also open 40 branches in the state. Lanceda’s corporate office will be set up in Thrissur this year, consolidating group operations under a common hub.
Currently, ICL Fincorp has 40 branches in Odisha, five in Maharashtra, and seven in Gujarat. With the upcoming expansion, the company plans to enter previously untapped states like Bihar and Jharkhand this fiscal year.
Financial performance and targets
With a current AUM of approximately ₹750 crore — 98.65% of which comprises gold loans — ICL Fincorp aims to double its AUM to ₹1,500 crore by the end of FY26. The average ticket size of its gold loans is around ₹50,000.
Funding for the expansion will come primarily through non-convertible debentures (NCDs), which form 90% of its capital structure.
The company plans to raise ₹1,000 crore via NCDs this year, with one tranche already issued and oversubscribed.
Other funding sources include share capital, promoter equity, and borrowings from institutions like SBI, Shriram, and the Kerala Government Financial Corporation.
ICL Fincorp recently launched loan-against-property products, which will cater to personal and business financing needs. While gold loans will remain the company’s core offering, it is targeting 20% portfolio diversification through new loan products.
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