Aadhar Housing Finance is planning to raise Rs 6,000 crore in 2024-25. In May, the company mopped up Rs 1,000 crore from the sale of fresh shares.
“We will borrow over Rs 6,000 crore this year. Non-convertible debentures should comprise nearly 20% of overall borrowings,” Rishi Anand, managing director and chief executive officer, said.
Assets under management rose 23% year-on-year (YoY) to Rs 21,100 crore as of March 31. Disbursements rose 20% YoY to Rs 7,100 crore in 2023-24 (April-March).
Around 75% of the company’s book comprises housing loans and the remaining 25% is loan against property. Around 57% of the book comprises loans to salaried customers and the remaining to the self-employed segment.
The average ticket size of loans is at around Rs 10 lakh. The spread was at 6.2% in 2023-24.
Around 70% of loans are given to the economically-weaker section and low-income group, and thus qualify for the priority sector lending.
Currently, the company has co-lending partnerships with Punjab National Bank and UCO Bank. The co-lending book stands at around Rs 500 crore.
“Interestingly, our non-housing loan ticket size stands at Rs 8.5 lakh, so it is micro loan against property. As we go ahead, we want to maintain the housing:LAP mix at 75:25,” Anand said.
The company expects assets under management to grow by 20-23% in the current financial year. The Pradhan Mantri Awas Yojana (PMAY) may help lift incremental disbursals by 10-15%.
However, Anand feels that the government should rethink the definition of ‘urban’ in metro-adjacent towns as the cost of construction in these areas is similar to those in neighboring cities. Here, the quantum of the subsidy should be fixed accordingly.
“The number of locations that is classified as ‘urban’ under the PMAY is limited. Currently, small towns and small talukas on the highways get left out,” he said.
“While the central government will give you the subsidy, states will have to take the initiative of launching affordable housing projects. This will help increase supply,” Anand said.
