Vastu Housing Finance is keen on expanding its new-to-credit customer base given the sizeable opportunity to lend to the segment, says managing director and founder Sandeep Menon.

The affordable housing finance company is backed by Renuka Ramnath led Multiples Alternate Asset Management along with Norwest Partners, IIFL Asset Management and Creation Investments. Multiples have been an early backer and is the largest shareholder in the company. Pramod Bhasin and Vikram Gandhi have been seed investors and continued to back the firm.

“Our new-to-credit customer base is the lowest among affordable housing companies. We have got a lot of credit-tested customers in the self-employed space. We have built the excellence to deliver products to them. That does not mean we should not do other things,” Menon said.

I think we will also change the mix over a period of time because there are a lot of good new-to-credit customers. It is good to strike the right balance between credit-tested and new-to-credit customers. Currently, our balance is skewed towards credit-tested prime customers. But, the opportunity in new-to-credit is equally good,” he added.

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Having begun operations in 2015, the affordable housing financier has an assets under management (AUM) of Rs 4,506.73 crore as on December 31. It expects AUM to touch Rs 5,900-6,000 crore on a consolidated basis in 2022-23(April-March).

Gross non-performing asset ratio improved to 1.31% as on December 31 from 1.93% a year ago.

The housing financier’s key products are home loans, commercial loans and loan against property.

Its non-banking financial company subsidiary Vastu Finserve India offers small business loan, car loan, commercial vehicle loan, tractor loan and construction equipment loan.

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Vastu Finserve India’s AUM is expected to hit Rs 600-700 crore by March 31.

“The opportunity is that mortgage penetration in India is very low. Total market outstanding of affordable housing in India in all colours and hues is still around Rs 2 trillion or `2.2 trillion. The opportunity is to take it to the level of prime mortgages in India and that is a multi-decadal opportunity but you have to put the customer first. You have to have a credit rating, a good capital, you have to be willing to retain your customers and give them the right deals. You have to also partner with larger banks in the ecosystem and make sure that you have the right co-lending books,” he said.