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Riding on the growth momentum in the home loan segment, Repco Home Finance has set a target of 20 per cent year-on-year (y-o-y) growth in loan disbursements and 12 per cent growth in total assets in the current fiscal.
“The way forward for FY24, we plan to stick to our guidance numbers of 20 per cent growth in sanctions and disbursements and 12 per cent AUM growth from FY23,” K Swaminathan, MD&CEO, Repco Home Finance, said in the company’s Q1 earnings call.
Repco Home Finance’s loan disbursements grew by 65 per cent y-o-y in FY23 to ₹2,919 crore (₹1,769 crore).
Swaminathan said the company is planning to increase the total disbursement from around ₹3,000 crore last year to around ₹3,600 crore this current year. “We are on track.”
Repco Home Finance is a subsidiary of Chennai-based Repco Bank. In Q1FY24, the overall loan book of the housing finance company stood at ₹12,655 crore. Housing loans accounted for ₹9,735 crore or 77 per cent of the total loan book while home equity products (including loan against property and commercial real estate loans) accounted for the remaining ₹2,919 crore (23.1 per cent). Of the total loan book, the ratio of exposure between non-salaried and salaried segments stood at 52 per cent and 48 per cent, respectively.
AUM growth
“As regards AUM, we were around ₹12,400 crore in the beginning of the year. We plan to reach somewhere around ₹14,000 crore by the current year-end,” Swaminathan said.
As of June 2023, Repco Home Finance has 193 touch points across 12 States and 1 Union Territory, which includes 159 branches and 34 satellite centres with additional 2 asset recovery branches.
Currently, 57 per cent of the lender’s total exposure is into Tamil Nadu followed by Karnataka (13 per cent) and Maharashtra (9 per cent). Swaminathan said the company intends to maintain that same ratio going ahead.
Shares of Repco Home Finance closed at ₹374 on NSE on Monday, 1.42 per cent higher than Friday’s closing price.
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