Reliance Home Finance Looks to Achieve 35-40% Growth by 2021
Reliance Home Finance (RHF) looks to achieve a growth of 35-40% in the next 2-3 years, said Ravindra Sudhalkar, ED & CEO of the company. The company clocked over 45% growth in the previous financial year, as per news reports.
It will also be looking to increase its Assets under management (AUM) to Rs 50,000 crore by 2021, from the current Rs 16,000 crore.
The company will also be increasing its office presence from current 54 to 75 by the end of this financial year. “From the 54 offices we manage about 125 locations but with 75 we will be able to manage 200 locations,” said Sudhalkar.
It currenlty has non-performing assets (NPA) of 0.8%. “In 2016, we had NPA of 1.24%. Due to various changes we brought-in in our working methods, we were able to significantly bring down our NPA in last few years. Going forward, we hope to maintain our NPAs in between 0.6-0.8%,”
About 50% of company’s loan book comes from affordable housing, 29% comes from construction finance while the rest 20% comes from loan against property.
It is expecting a 12% growth in its loan book this year. The company however has no plans to enter the rural areas or in the below Rs 5 lakh home loan segment as of now. “The operational cost is too high,” says Sudhalkar. About 80% of its revenue currently comes from Rs 10-25 lakh home loan segment. “We focus more on the self-employed class. The segment is expected to grow more in coming years which we want to capitalise on,” said Sudhalkar.