Shriram Housing Finance charts Rs 10,000-cr AUM growth map by FY24

Business Standard Shriram Housing Finance charts Rs 10,000-cr AUM growth map by FY24

Shriram Housing Finance has drawn up an aggressive growth trajectory for the next two years with a plan to close the loan book at around Rs 5,600 crore this fiscal, and end FY24 at the Rs 10,000-crore mark, a top company official has said.

The city-based affordable housing focused lender, which is one of the three credit business verticals of the Chennai-based Shriram Group, closed FY21 with a loan book of Rs 3,923 crore, which despite the pandemic washout has already crossed Rs 4,000 crore as of endJune.

This means the company plans to add more than 1.5 times of its present book over the next 30 months, managing director and chief executive Ravi Subramanian told PTI in an interview.

According to the plan, the loan book should be touching Rs 5,000 crore by December and close the year at around Rs 5,600 crore, and reach Rs 8,000 crore in FY23 and top Rs 10,000 crore by FY24, said Subramanian who is also a fiction-writer.

The overall plan is to be amongst the top three affordable housing financiers, as already over 70 per cent of its book is in the affordable category, he said, adding the demand for housing is back and the overall tailwinds are positive now.

This year's target is based on the optimism that there is no third wave of the pandemic, as the second wave has nearly washed out the first quarter, he admitted.

The disbursals are at 80 per cent levels now averaging Rs 170 crore, which used to be Rs 200-250 crore a month. We expect the monthly run-rate to touch Rs 300 crore from September provided there is no third wave and the vaccination pace increases, Subramanian said.

The company closed FY21 with Rs 62 crore profit, which Subramanian attributed to the low scale of its operations, but added that his mandate is to increase the scale, and keeping the cost lower.

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