Repco Home Finance Ltd, a subsidiary of the government-owned Repco Bank, is entering into infrastructure financing in a big way. Having gained expertise over the years, the company has decided to float a subsidiary called Repco Infrastructure Development Company (RIDC), the company said in a release.
The Chennai-headquartered home finance company believes that the goodwill earned over the years coupled with its close rapport with both state and Central governments will make the proposed infrastructure subsidiary a preferred partner for public-private-partnership (PPP) projects. The company hopes to exploit the increasing demand and supply gap situation in the country on infra financing.
The company is targeting a total business of Rs 1,000 crore during the current fiscal and pan-India presence. Having established 33 branches, mostly in the southern states, the company will be expanding to places such as Hyderabad, Mysore, Thiruvananthapuram, Pune, Nellore, Rajamundhry, Cuddalore, Belgaum, Hubli and Shimoga in the current fiscal.
For the fiscal ended March 31, 2007, the company reported 35% growth in net profit to Rs 15.57 crore as against Rs 11.53 crore and 61% growth in operating income to Rs 71.39 crore from Rs 44.37 crore.
The return on capital employed stood higher at 27% as compared to 24.83% during the previous fiscal.
During the year under review, the cumulative loan approvals stood at Rs 908 crore, registering a growth of 48%. The cumulative disbursal stood at Rs 848 crore, a growth of 48%.