Muthoot HomeFin (India) plans to raise up to Rs800 crore from the market next fiscal to fund its expansion in the southern part of the country.
The housing finance company, a subsidiary of Muthoot Finance, lends only to affordable home loan customers with end users contributing nearly 90% of its loan book. The average ticket size on the loan book is Rs11 lakh. In an interview to PTI, the company’s chief executive officer Ramratthinam S. said that Muthoot HomeFin performed “exceedingly well” in the December quarter when old Rs500/1000 notes were withdrawn and the country witnessed a cash crunch.
“The company has performed exceedingly well in the December quarter by disbursing over Rs100 crores. We have been able to achieve this disbursement number with a specific focus on end users and in lending more in ready-to- move-in properties,” he said. Muthoot HomeFin disbursed Rs175 crore till December in the ongoing financial year and plans to disburse Rs400- Rs450 crore during the entire fiscal, he said.
On the company’s growth plans, Ramratthinam said, “we would be raising funds anywhere between Rs 350-Rs 400 crore this fiscal. We plan to raise around Rs 750-Rs 800 crore in the next fiscal through bank borrowings and from capital market”. Muthoot HomeFin has operations in Kerala, Maharashtra, Gujarat, Madhya Pradesh and Rajasthan currently, and would be increasing its locational presence in these states. It intends to enter new geographies in the South by commencing business operations in Tamil Nadu, Andhra Pradesh, Telangana and Karnataka in the next fiscal.
He added the firm would be “aggressively marketing” the interest subsidy schemes on loans up to Rs12 lakh for rural and urban housing announced by the Prime Minister on the eve of New Year. “We are also targeting builders who are executing projects in these ticket size and would enter into a tie-up with them by approving their projects,” he said. The firm predominantly borrows from banks for onward lending to customers.
Source: Mint