Mortgage lender Shriram Housing Finance is looking at around 50-60% raising of loan disbursement to ₹1,800 crores in the current financial year. During the fiscal ended March 31, 2020, the company promoted by Shriram City Union Finance had disbursed ₹1,127 crores.
Ravi Subramanian, the company’s managing director, and CEO stated that the company hadn’t progressed in business in the first quarter but in FY21 the company will be doing about 50-60% more business than FY20. The company will be distributing ₹1,800 crores by this year’s end. In the first quarter of the current fiscal, the housing financier disbursed ₹77.4 crores and there is a sharp decline of 68.1 % every year, due to the lockdown forced in the country as a result of the spread of coronavirus. The company disbursed around ₹520 crores in the second quarter of FY21, which was more than 20-25 % than the disbursals in every quarter. He also added that the biggest tumbling block was COVID-19 in Q1, but they had come back in the path that the growth in Q3 and Q4 will be more than Q2 and Q3 respectively.
The company’s loan portfolio includes loan against property (LAP), housing loans, and construction finance. Housing finance contributes 60 % of the loan disbursement, the share of LAP contributes to 35 % and construction finance to 5% respectively. He recognized a major growth from the housing loan segment in the current financial year. People are more interested in extending their existing properties by building another room or two on their terrace rather than buying properties. The self-construction deal is seeing an increase in the tier2 and 3 cities. There is more contribution to the growth in this fiscal year.
The mortgage financier is also looking at increasing ₹400-500 crore in the third quarter, which would be largely in the form of bank borrowings and securitization transactions. The company raised ₹100 crores through securitization route in the second quarter of FY21 and ₹200 crores through bank borrowings and non-convertible debentures.
Reserve Bank of India announced that by the widespread cause of COVID-19, the company does not expect much demand for a one-time restructuring of loan accounts. The average ticket size of the company is around ₹17-20 lakh. The company has already 73 branches spread across the nation and decides to open 27 more branches by march-end.
