Private equity firm Creador has picked up 9.9 per cent stake in Repco Home Finance Ltd for $13.7 million (around Rs 72.4 crore). Repco Home Finance is promoted by Chennai-based Repco Bank, a government-owned bank which was founded in 1969.

The housing finance industry in India will continue to see strong growth given the favourable demographics, low penetration, and with housing viewed as a stable asset class.

According to Crisil estimates, the housing finance industry grew at a compounded annual growth rate (CAGR) of 17.5 per cent during 2007-2011, with outstanding loans of 6.6 lakh croreas of 2011, says a press release from Creador.

RHFL provides home loans for both salaried and non-salaried persons. It has built a strong presence in South India and has started expanding to other States, with an eye on non-metro locations. It has 74 branches across eight States and one Union Territory.

The company had a loan portfolio of over Rs 3,100 crore as of September 2012. This had grown at a CAGR of 41 per cent between March 2008 and September 2012. For the half-year ended September 2012, the company posted a net profit of Rs 35.6 crore.

RHFL is Creador’s fifth investment globally and second in India. Creador’s maiden investment was in Cholamandalam Investment and Finance Company Ltd, a non-banking finance company headquartered in Chennai and part of the Murugappa group.

ravikumar.ramanujam@thehindu.co.in

(This article was published on February 11, 2013)
XThese are links to The Hindu Business Line suggested by Outbrain, which may or may not be relevant to the other content on this page. You can read Outbrain's privacy and cookie policy here.