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Bullish on demand for housing in the long-term, Edelweiss Housing Finance (EHFL), the housing finance arm of Edelweiss Capital, aims to disburse around Rs 3,000-crore worth of loans by FY’15.
“Given the shortage of housing and growing urbanisation, the demand will stay robust in the long-term. We see this as an opportunity for our business. We aim to disburse Rs 3,000 crore of retail housing loans by FY’15. These numbers will go on increasing in the years to come,” the company Chief Executive Officer, Mr Anil Kothuri, told PTI here.
The company intends to disburse Rs 1,000-crore loans this fiscal (FY’12), he said.
Last year, the financial mortgage market size (including home loans and loans against home) was around Rs 1.5 lakh crore. It is expected to double in the next 4-5 years.
“We started our operations in September 2010 and disbursed around Rs 120 crore by March 2011. But in the next 4-5 years, we want to capture at least 1.5 per cent of the total market, which is poised to grow to Rs 3 lakh crore then,” Mr Kothuri said.
On raising funds for its disbursal plans for FY’12, the CEO said: “Our Tier-I capital adequacy ratio is 10 per cent. Given the current goal of Rs 1,000 crore of loan disbursals, our capital originalisation will be Rs 100 crore.
We already have around Rs 40 crore as equity capital base. Our parent company would infuse the remaining Rs 60-crore capital. For the remaining 90 per cent, the company plans to take debt route.’’
“Debts would be primarily in the form of bank borrowings, overdrafts and mutual funds. Refinance would also be one of the options for raising funds at a later stage,” Mr Kothuri said.
On its plans to expand operations in the country he said: “At present, we have our operations in Mumbai, Delhi, Bangalore and Pune. In the coming months, we plan to expand our presence in five cities, including Hyderabad, Chennai, Ahmedabad, Baroda and Surat. In FY’13, we plan to begin operations in another 10 cities. Once these are operational, we will have covered 90 per cent of the mortgage market.”
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