IIFL Home Finance Limited (IIFLHFL), a wholly owned subsidiary of IIFL Finance, is aiming at 20 per cent growth in assets under management (AUM) in each of next three financial years, Monu Ratra, CEO and Executive Director, has said.
“We have seen a tremendous comeback after May and demand (for home loans) is now very robust. We are at pre-pandemic levels of business operations. The next 3-5 years should not be a problem even if there is a cyclical slowdown,” Ratra told BusinessLine .
Digital transformation
IIFLHFL’s AUM stood at ₹21, 474 crore as of September 30 this year. This retail-focused affordable housing finance company built lot of muscle in recent years by leveraging technology and introducing end-to-end digitised processes.
In FY21, the company had disbursed ₹5,500 crore and it is confident that the level of disbursement would be higher this fiscal.
Co-lending arrangements
IIFLHFL had in the recent past entered into a co-lending arrangement with Standard Chartered Bank, Punjab National Bank, Central Bank of India and ICICI Bank for extending credit to MSME loans.
Ratra said that the company — among the top ten in the housing finance industry league — now wants to scale up its “co-lending” activities and may, in the coming months, do more such partnerships.
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“So far, we have done ₹500 crore in co-lending. We expect a few more sign ups and, once we do that, we would be in a position to scale up tremendously and give much more competitive pricing,” he said.
IIFLHFL is not looking to list it’s equity in stock exchanges. IIFLHFL will also not look at acquisitions for growth, he added.
Last fiscal, the company had recorded net profit of ₹401 crore. In the first half of this fiscal, IIFLHFL had recorded net profit of ₹284 crore, Ratra said.
IIFLHFL expects home loans to continue contributing the lion’s share of its overall business in the coming years as well. It also expects to maintain its net interest margin (NIM) at 3.5 per cent in the current fiscal .