Shriram Housing Finance aims to double loan book in two years

Shriram Housing Finance aims to double loan book in two years

Enthused by the resurgence in the home loan segment, mortgage lender Shriram Housing Finance is aiming to more than double its book in the next two years. The lender, which expects to close the year at Rs 3,700 crore, aims to close FY23 with a book size of Rs 10,000 crore. Bulk of the growth is expected to come from the affordable housing loan segment.

“We are aiming to reach a book size of Rs 6000 crores by FY22 and Rs 10,000 crores at the end of FY23,” said Ravi Subramanian, MD, Shriram Housing Finance. “We have grown conservatively and build a strong foundation, if we are able to sustain such healthy asset quality numbers for another year then we can go all out with the growth.”

In the third quarter, the lender crossed an AUM of Rs 3000 crores for the first time, 96% of which came from the retail segment and the remaining came from construction finance. The lender had the highest ever quarterly disbursements of Rs 595 crore in the December quarter.


Gross non-performing loan ratio stood at 1.71% at the end of the December quarter; without the Supreme Court standstill clause the gross bad loan ratio would have been 2.4%.

“At the end of December quarter, we had only two accounts which were non-performing loans. That is a big achievement for us and if we are able to sustain the portfolio quality for another year, I can claim that we are the best performing housing finance lender in this segment,” Subramanian said.

The mortgage lender recently went through a restructuring exercise and exited geographies it doesn’t want to be present in. The mortgage lender is focusing on Andhra Pradesh and Telangana markets where a large part of its growth came from. The lender also plans to expand its branch presence to 125 from the present 90 in these locations by September 2021. The lender also plans to capitalise the synergies within the Shriram group to grow its book.

“For me, the group benefits are enormous and that has not been leveraged, I am very happy looking at pools, we will soon be closing a Rs 15 crore pool buy from a smaller NBFC,” Subramanian said. “In our plan next year, we have zeroed in on a number for pool buys and balance sheet support for smaller NBFCs.”

Almost all lenders are banking big on the mortgage segment, with SBI recently announcing its intent to double its mortgage book to Rs 10 lakh crore in 5 years. ICICI Bank had also recently announced that its mortgage book had crossed Rs 2 lakh crore and expects the next Rs 1 lakh crore to come much sooner.

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