SMFG India Home Finance remains committed to its goal of doubling its assets under management (AUM) over the next five years despite a slowdown in the supply of affordable housing projects.
Managing Director and Chief Executive Officer Deepak Patkar said the long-term growth opportunity in the segment remains intact.
SMFG India Home Finance is a wholly owned subsidiary of SMFG India Credit.
The housing finance company had assets worth about Rs 12,900 crore as on March 31, 2026, and sees no reason to alter its long-term strategy despite near-term challenges.
Patkar said, “Our long-term vision remains firmly on track. The affordable housing sector continues to offer immense opportunities, and we remain confident about its growth potential. While the pace of growth may vary depending upon the supply of new affordable housing projects, we believe supportive policy measures will further strengthen the sector.”
Patkar said the current weakness in affordable housing is being driven by constrained supply rather than a lack of demand. Developers have slowed the launch of organised affordable housing projects, but homebuyers continue to seek housing, with many opting to buy plots and construct independent houses, particularly in smaller towns.
“Demand for affordable housing remains strong across markets. The next phase of growth will be supported by greater availability of well-planned affordable housing projects, enabling more families to become homeowners,” he added.
The company sees significant opportunities emerging from Tier-II and Tier-III cities as urbanisation continues to accelerate. Patkar said SMFG India Home Finance sees strong growth potential in Uttar Pradesh, Madhya Pradesh, Rajasthan and Punjab, where its presence is steadily expanding beyond larger urban centres.
Patkar said India’s mortgage market still has significant room to grow, with mortgage loans accounting for only about 11% of GDP, compared with much higher levels in several other developing economies. The company, therefore, remains focused on first-time homebuyers and middle-income customers rather than the premium housing segment, viewing them as the biggest long-term opportunity.
SMFG India Home Finance currently has around 63% of its portfolio in home loans, with the remaining 37% comprising non-home loans. Patkar said the lender intends to further increase the share of home loans, even if that results in slower growth than some peers.
“Our growth strategy is anchored in strong governance, prudent risk management and portfolio quality. As part of Japan’s Sumitomo Mitsui Financial Group, we follow globally benchmarked standards of compliance, cybersecurity and risk management,” Patkar said.