Article from The Hindu Business Line
According to Deo Shankar Tripathi, CEO, Aadhar Housing, the company is banking on its foray into states like Punjab, Haryana and Maharashtra (that it entered this year) and improved branch network to boost disbursals. Branches will rise to 102 (from 92) by the end of this fiscal, and to 140 by end-FY17.
Increased focus on the “Housing for All by 2022” scheme — launched by the Centre in June this year — is another factor that the company hopes will help boost its disbursals.
“We entered Punjab, Haryana, Uttarakhand and Maharashtra around October this year. But the benefit of increased disbursals will be visible next year onwards when it will reflect in our loan books. By FY18, our disbursals will be around ₹3,000 crore,” he told BusinessLine.
In FY15, its loan book (including new and old disbursals) stood at ₹972 crore, and it is expected to be around ₹1,700 crore in FY16. Tripathi further added that the “Housing for All” scheme would lead to “incremental demand” (for homes and home loans).
Mumbai-based Aadhar is promoted by the Dewan Housing Finance Corporation (DHFL) group; IFC, a member of the World Bank, holds 20 per cent equity in it. The financier’s average loan size is ₹6.75 lakh and it has a recovery rate of nearly 99 per cent.
Its offerings include loans for purchase of plot, flats, for construction, loans against property, and loans for house improvement. According to Tripathi, the company has also applied to the National Housing Bank (NHB) for refinancing facility. It is expecting around ₹200 crore from NHB. This apart, it will also approach banks for loans and tap the markets thorough options such as commercial paper and non-convertible debentures (NCDs).
“We may require funds to the tune of ₹1,600 crore next fiscal, of which we are expecting refinancing to the tune of ₹200 crore from the NHB. The remaining may be a 50-50 mix of market borrowings and bank loans,” he added.