Unity SFB sees traction in climate and social infra lending, to launch its credit cards soon
Unity Small Finance Bank, promoted by Centrum Financial Services, has reported notable progress in its new verticals such as climate finance and social infrastructure lending, while also experiencing steady growth in its core lending segments. The bank is launching its credit cards soon and expanding its physical presence into several untapped States. Unity on Monday expanded its operations in Tamil Nadu by opening eight branches—six in Chennai and two in Coimbatore.
“We are making significant strides in climate finance, which we view as a key growth area. Our newly launched vertical focuses on environment-friendly initiatives, actively lending to businesses engaged in electric vehicles (EVs), solar and wind energy projects, and other sustainable ventures,” said Inderjit Camotra, Managing Director & CEO of Unity Small Finance Bank.
Camotra noted that the bank has formed partnerships with leading companies in these sectors and sees ample opportunities to grow this portfolio as it ventures into untapped States such as Tamil Nadu, which has made advancements in climate-conscious projects.
Social infra
In addition to climate finance, another key growth area for the bank is social infrastructure, where it finances hospitals, schools and skill development institutions. With a dedicated vertical for these projects, Unity aims to support India’s youth through training and education initiatives. Both the climate finance and social infrastructure portfolios have grown to approximately ₹250 crore each.
Unity Small Finance Bank’s current asset size stands at ₹8,500 crore, with microfinance and SME portfolios each accounting for ₹3,000 crore, while the supply chain finance portfolio is valued at ₹1,500 crore. The MSME business is valued at about ₹300 crore.
The bank is also preparing to launch its credit cards aimed at young Indians, particularly Gen X and millennials. These cards will include benefits such as medical insurance for senior citizens. Unity SFB is collaborating with three companies, including one based in the UK.
TN foray
Despite a competitive landscape with traditional banks and non-banking financial companies (NBFCs), Tamil Nadu offers significant growth potential, especially in niche areas like vendor and dealer finance, in addition to climate finance. “This is not Unity Bank’s first foray into Tamil Nadu. For the past three years, we have collaborated with large companies in the State through microfinance and supply chain finance initiatives,” Camotra stated.
The bank is also extending its footprint into other States, including Uttar Pradesh, Rajasthan, Haryana, and Kerala. Following its acquisition of PMC Bank, Unity has consolidated its presence and is now targeting regions where PMC had limited influence, such as South India. The bank recently entered Telangana, with Andhra Pradesh next on its radar.
The company reported a profit after tax of ₹439 crore for FY24, with strong growth expected in the first half of this fiscal year. Final numbers are expected next week. “We’re on track to maintain our upward trajectory,” he added. Over the next five years, Unity Small Finance Bank aims to grow its customer base to 10 million and achieve assets and liabilities of ₹50,000 crore each. Currently, it serves 2.1 million customers and is adding approximately 35,000 new customers each month.