Repco Home Finance Ltd. (RHFL), is expecting to post a growth of 10-11% in lending during this fiscal to reach a loan book of ₹13,000 crore, said K. Swaminathan, MD & CEO.
“We maintain that we expect a growth of 10% to 11% in the loan book, we do not want to change as of now. We still maintain ₹13,000 crore loan book by FY23,” he said during the analysts call.
According to him, the company has reported strong performance in Q1, after two subdued first-quarter performances in the last two years due to COVID. Loan sanctions and disbursements grew by 236% and 168% respectively.
Asserting that RHFL’s growth story has started not just in one centre or branch but throughout the country with 80-85% participating in Q1, he said that this momentum would continue in the current quarter as well.
Business activity has picked up handsomely. Loan sanctions sanctions have increased by 6% sequentially to ₹692 crore and disbursements by 7% sequentially to ₹642 crore, he said.
While pointing out that the loan ticket size has improved from around ₹14.5 lakh to ₹16-18 lakh, he said this means ‘slowly we are moving up in the ladder’. So, average ticket size also may go gradually in the coming days.
The Chennai-based housing finance company has a capital adequacy ratio of 34.2%, of which tier-I is 33.2%.
“Liquidity continues to remain comfortable for us as we have carried around ₹273 crore of cash and cash equivalents as of June. In addition, we have ₹1,900 crore of unutilised lines of credit,” he said.
During Q2, RHFL resumed its network expansion activities by doing some surveys. Hopefully, new branches or centres would be opened during Q3 or Q4, he said. Currently, the company has 158 branches and 22 satellite centres.
