Affordable housing-focused Home First Finance, which mainly exploits first-time buyers, is bullish in the market and is on track to disburse 30% more loans in the past financial year to close this year at around Rs 5,600 crore .
The mortgage lender has recorded growth of 7% in each of the three quarters this financial year, which saw its live lending book touch the Rs 5,000 crore mark in the December 2021 quarter, which was a record for the city-based company. .
It hopes to improve it in the fourth quarter by helping it close the year with 30% more sales, he added.
The lender reported a 189% increase in its net income to Rs 46 crore in the third quarter as its disbursements reached a record Rs 570 crore, a growth of 63.3%, taking the total loan portfolio to Rs 4,994 crore, 26.7% higher than the same period in FY21 when it was Rs 3,941 crore.
“Our disbursements have averaged 7% each quarter this year and demand momentum will only pick up in the March quarter, based on January figures.
“I am confident to close the current financial year with Rs 5,500-5,600 crore from the loan book. If the January momentum continues into March, fourth quarter sales should exceed Rs 600 crore,” said its managing director and chief executive, Manoj Viswanathan, told PTI on Thursday. .
His optimism comes from the near-zero impact on demand and collection so far from the third wave of the pandemic. “In December, those who had delayed their payments returned to regular payments,” he said.
Viswanathan added that the record disbursement in the third quarter came evenly from the six states, the four southern states and Maharashtra and Gujarat where it mainly operates.
“The March quarter of 2021 looks solid from the January figures and we should be able to do better than the third quarter now, selling more than Rs 600 crore of additional loans,” Viswanathan said.
As an affordable housing-only lender, its average note size is around Rs 10 lakh and the company has repaid Rs 600 crore in grants so far, he said.
It onboarded 5,000 new customers in the third quarter, bringing the total number to over 60,000 now. Among them, no less than 75% belong to the low income group and the economically weakest bracket. Home loans contribute 91% of its total assets.
In the third quarter, its total revenue stood at Rs 152 crore, which increased by 38% from Rs 110 crore in the third quarter of FY21, and by 3.8% sequentially to Rs 146 crore.
This despite an increase in bad debts of 2.6% in the third quarter, compared to 1.6% a year ago, as the RBI revised the NPA guidelines for non-banking financial companies (NBFCs) to declare 30 days after the default due dates. This led to an additional Rs 34 crore in the form of bad debts in the third quarter.
Home First was founded by Jaithirth Rao, PS Jayakumar and Manoj Viswanathan 11 years ago as a digitally-focused affordable housing lender and now serves over 60,000 customers in 13 states. No less than 76% of its customers are registered on its application and payments received via the application have increased by 114%.
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