News | Aditya Birla Capital Targets 25% Annual Growth in Loan Book Through Digital and Retail Expansion

Aditya Birla Capital Targets 25% Annual Growth in Loan Book Through Digital and Retail Expansion

News

15 May 2025

2 min read

UBS Forums

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Aditya Birla Capital Ltd (ABCL) is aiming for a sharp scale-up in its lending business, targeting a 25% compound annual growth rate (CAGR) in its loan book over the next three years. The plan aligns with the company’s ambition to double its lending portfolio by FY28, driven by strong momentum across its retail, MSME, and insurance verticals.

The company recently completed the amalgamation of Aditya Birla Finance with ABCL, a move that has freed up ₹30,000–35,000 crore of capital, expected to fund growth for the next 12–18 months. This consolidation also boosts operational efficiency and capital allocation across its lending arms.

Digital platforms are a cornerstone of this strategy. ABCL’s direct-to-consumer platform, ABCD, has enabled over 5.5 million customer acquisitions and offers more than 25 financial products, including credit, insurance, and investment options. Meanwhile, its B2B platform, Udyog Plus, is supporting over 2.2 million MSMEs with digital access to loans and supply chain financing.

In Q4 FY25, the housing finance division reported a 98% YoY surge in disbursements, while the loan book expanded 69% YoY to over ₹31,000 crore. On the insurance front, the life insurance business recorded a 34% increase in individual first-year premiums, with embedded value rising to ₹13,812 crore.

With digital scale and capital readiness, ABCL expects to improve return on assets to 2–2.2% in the next 8–10 quarters, reflecting its focus on profitable, tech-enabled growth.

Reference: ET BFSI