Muthoot HomeFin (India) plans to raise up to Rs 800 crore from market next fiscal as it is expanding business in the southern part of the country.
Muthoot HomeFin (India) plans to raise up to Rs 800 crore from market next fiscal as it is expanding business in the southern part of the country. The housing finance company, a subsidiary of Muthoot Finance, lends only to affordable home loan customer with end users contributing nearly 90 per cent of its loan book. The average ticket size on the loan book is Rs 11 lakh.
In an interview to PTI, company’s CEO Ramratthinam S said that Muthoot HomeFin performed “exceedingly well” in the December quarter, in which the old Rs 500/1000 notes were demonetised and the country witnessed a cash crunch. “The company has performed exceedingly well in the December quarter by disbursing over Rs 100 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.
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Muthoot HomeFin disbursed Rs 175 crore till December in the ongoing financial year and plans to disburse Rs 400 to Rs 450 crore during the entire fiscal, he said. Talking about 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”. The company is operating in Kerala, Maharashtra, Gujarat, Madhya Pradesh and Rajasthan currently, and would be increasing the locational presence in these states.
Muthoot HomeFin intends to enter new geographies in the South by commencing business operations in the states of Tamil Nadu, Andhra Pradesh, Telengana and Karnataka in the next fiscal. Ramratthinam further said the company would be “aggressively marketing” the interest subsidy schemes on loans up to Rs 12 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 company predominantly borrows funds from banks for onward lending to customers.