Aadhar Housing Finance expects its AUM to surpass INR 25,000 crore by FY24, up from INR 22,817 crore as of September 2023, marking a 23-24% growth rate. Focused on low-income housing, the company reports an average loan size of INR 10 lakh and a gross NPA ratio of 1.29%. In H1 FY24, profits rose 24% to INR 428 crore. To support expansion, Aadhar plans to raise INR 500 crore via non-convertible debentures and open 50 new branches within four months, adding to its existing 545 branches across 21 states. Strong collection efficiency of 99% underscores its robust financial performance and growth outlook.
Aadhar Housing Finance, a key player in the affordable housing market, is on track to significantly expand its operations. The company anticipates that its assets under management (AUM) will surpass INR 25,000 crore by the end of the current financial year. As of September 30, 2023, Aadhar reported an AUM of INR 22,817 crore, up from INR 18,885 crore the previous year. According to Rishi Anand, the company's Managing Director and CEO, they expect to achieve a growth rate of 23-24%, potentially reaching an AUM of INR 25,000-26,000 crore by March 2025.
Aadhar Housing Finance focuses primarily on the low-income housing segment, which is crucial for addressing the housing needs of many Indian families. The average loan size offered by the company is INR 10 lakh, with a loan-to-value ratio of 59%. Notably, salaried individuals represent 56% of their customer base, reflecting a steady demand for affordable housing loans. In the first half of the financial year, the company reported a profit of INR 428 crore, marking a 24% increase from INR 344 crore during the same period last year.
The company has successfully maintained a healthy financial profile, with a gross non-performing asset (NPA) ratio of just 1.29%, down 6 basis points from the previous year. Their collection efficiency stands impressively at 99%, indicating effective management of loan repayments. This strong performance is critical as Aadhar Housing Finance seeks to further enhance its services and reach more customers.
To support its growth strategy, Aadhar plans to raise INR 500 crore through non-convertible debentures in the coming months. This move is part of a broader strategy to diversify funding sources, which also includes exploring external commercial borrowing. This approach will help the company strengthen its financial position and support its expansion plans.
In addition to financial growth, Aadhar Housing Finance is focused on expanding its distribution network. The company aims to open 50 new branches within the next four months, increasing its presence in underserved areas. Currently, Aadhar operates 545 branches across 21 states, serving over 2.77 lakh live accounts. The addition of nine new branches this quarter brings the total to 22 new branches opened in the current financial year, enhancing their ability to reach more customers in need of affordable housing solutions.
As the demand for affordable housing continues to grow in India, Aadhar Housing Finance is well-positioned to play a significant role in meeting this need. With its focus on low-income segments and commitment to maintaining high service standards, the company is set to contribute to the country's housing goals while ensuring financial stability and growth.
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