IIFR Home Finance sees an “extraordinary” return after May

IIFL Home Finance Limited (IIFLHFL), a wholly owned subsidiary of IIFL Finance, is targeting 20% ​​growth in assets under management (AUM) in each of the next three fiscal years, said Monu Ratra, CEO and Executive Director.

“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 activity. The next 3-5 years shouldn’t be a problem even if there is a cyclical downturn, ”Ratra said. Activity area.

Digital transformation

The assets under management of the IIFLHFL stood at 21,474 crore as of September 30 of this year. This retail focused affordable housing finance company has grown a lot in recent years by leveraging technology and introducing digital end-to-end processes.

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In FY21 the company had disbursed 5,500 crore and is confident that the level of disbursement would be higher for this fiscal year.

Co-loan agreements

The IIFLHFL had recently entered into a co-loan agreement with Standard Chartered Bank, Punjab National Bank, Central Bank of India and ICICI Bank to provide credit to MSMEs.

Ratra said the company – among the league’s top ten in the housing finance industry – now wants to step up its ‘co-lending’ activities and may, in the coming months, enter into more such partnerships. .

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“So far we have made 500 crore in co-loan. We are expecting a few more registrations and once that is done we would be able to grow significantly and offer much more competitive prices, ”he said.

The IIFLHFL does not seek to list its shares on the stock exchange. The IIFLHFL will not consider acquisitions for growth either, he added.

In the last financial year, the company recorded a net profit of 401 crore. In the first half of this fiscal year, the IIFLHFL recorded a net profit of 284 crore, Ratra said.

The IIFLHFL expects home loans to continue to contribute the lion’s share of its overall business in the years to come as well. It also plans to maintain its net interest margin (NIM) at 3.5 percent in the current fiscal year.

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