Shriram Housing Finance seeks to double loan book to Rs 10,000 cr by FY24

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Fifth-largest affordable housing player Shriram Housing Finance has set a target to double its loan portfolio to Rs 10,000 crore and become the third-largest player by FY 2024 on the back of growing 45% this FY to around Rs 5,300 crore. Shriram Housing Finance, promoted by Shriram City Union Finance, commenced operations in December 2011 and over the past three years has doubled its loan portfolio.

It operates around 100 stand-alone branches and over 200 branches within its sister branches Shriram City Union and Shriram Transport Finance. Its footprint will cross 105 own branches (up from 77 last year) and 218 kiosks by the end of the month.

With just over Rs 5,000 crore pound in direct lending in February, Shriram Housing is the fifth largest affordable housing lender now and hopefully will be fourth by the end of this financial year with a pound loan of around Rs 5,300 crore, said Ravi Subramanian, Managing Director and CEO of the city-based firm.

Aadhar Housing leads the segment with a loan portfolio of over Rs 14,000 crore, followed by Awas and Repco with over Rs 10,000 crore each and Homefirst has a slightly larger book size than Shriram now.

“With a growth rate of 45% over the 11 months of this fiscal year, we are currently the fastest growing affordable housing lender. At this rate, we can comfortably double our AUM/live loan portfolio to more of Rs 10,000 crore by FY24. This faster growth is due to heavy investments to expand distribution channels,” Subramanian told PTI.

They also expect to overtake the current number four by the end of this month and become the fourth largest with an AUM of Rs 5,200 to 5,300 crore, Subramanian said, adding that this will further strengthen our position in as the fastest growing segment with the best highest quality – raw NPAs plunged 5.6% to 1.49% to hit an 8-year low in February and are expected to decline further to 1.1-1 .3% by the end of March.

Regarding geographic expansion, he said that they have already added 170 kiosks in Shriram City branches in Telangana and Andhra, making these states their largest geography, and they will have 22 in Tamil Nadu and 16 in Karnataka by the end of the month. Apart from that, Gujarat will have 40 kiosks in the branches of Shriram Transport by the end of the month.

“Our strategy is to have our own fully-fledged branches in all kiosk branch areas where the loan book exceeds Rs 5 crore,” Subramanian added. “In total, we will have 105 fully-fledged branches by the end of March, up from 77 at the start of this fiscal year, and 218 global footprints.”

He attributed the massive improvement in asset quality to decentralized underwriting practices coupled with better customer selection which resulted in only 7% of nearly 1 lakh customers being first-time borrowers and more than enough. focus on collection, which led to collection efficiency improving to 99.7% in December and 97% of customers paid at least one EMI in the third quarter.

Expecting faster loan growth, developers injected growth capital of Rs 500 crore in the third quarter, Subramanian said.

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