“In the first quarter, we didn’t do much business. Despite that, in FY21, we will do about 50-60 per cent more business than what we did in FY20. We will end this year with a disbursement of Rs 1,800 crore,” the corporate’s managing director and CEO Ravi Subramanian instructed .
In the primary quarter of the present fiscal, the housing financier disbursed Rs 77.four crore, a decline of 68.1 per cent year-on-year, owing to the nationwide lockdown imposed to include the unfold of the coronavirus.
In the second quarter of FY21, it disbursed round Rs 520 crore, which was 20-25 per cent greater than what it disburses in each quarter, he stated.
“The biggest tumbling block was COVID-19 in Q1, but we have come back on trajectory. Growth in Q3 is more than Q2, and growth in Q4 will be more than Q3,” he stated.
The firm’s mortgage portfolio contains housing loans, mortgage towards property (LAP) and building finance. While housing finance contributes 60 per cent of the mortgage disbursement, share of LAP and building finance is 35 per cent and 5 per cent, respectively.
In the present monetary yr, he sees development coming majorly from the housing mortgage section.
“Home loan is where we will build our books. More than people buying properties, a lot of people are extending their existing properties by building another room or two on their terrace. The self-construction deal is actually seeing an increase in the tier-2 and 3 cities. And I see that contributing a lot more to the growth this fiscal,” Subramanian stated.
The mortgage financier can be elevating Rs 400-500 crore within the third quarter, which might largely be within the type of financial institution borrowing and securitisation transactions, he stated.
In the second quarter of FY21, it raised Rs 100 crore by way of securitisation route and Rs 200 crore by way of financial institution borrowing and non-convertible debentures.
The firm doesn’t anticipate a lot demand for one-time restructuring of mortgage accounts affected by COVID-19, introduced by the Reserve Bank of India.
“I don’t see more than 4-5 per cent of my loan book facing restructuring. It is a tool used for curing large value loans. The kind of the ticket size we have and looking at the granularity of our portfolio, I don’t see too many loans being restructured,” Subramanian added.
The common ticket measurement of the corporate is round Rs 17-20 lakh.
The firm has 73 branches unfold throughout the nation and plans to open 27 extra branches by end-March, he stated.