Star Housing Finance has secured a Rs 50 crore loan from State Bank of India (SBI), as per an official filing with the Bombay Stock Exchange. The company has also received loans from other institutions like Tata Capital Financial Services (Rs 6 crore), IDBI Bank (Rs 10 crore), and ICICI Bank (Rs 2.92 crore). Notably, shareholders have approved the reappointment of Ashish Jain as the chairman and managing director. Star Housing Finance's financial performance has been impressive, with Q1 FY24 witnessing a 99.51% YoY growth in total income to Rs 12.29 crore and a significant rise in net profit to Rs 1.55 crore. The company plans to raise funds through unsecured/secured redeemable NCDs or bonds for growth.
According to an official filing with the Bombay Stock Exchange (BSE), State Bank of India (SBI) recently sanctioned a loan of Rs 50 crore to Star Housing Finance. The company has recently undertaken loans from other institutions such as Tata Capital Financial Services (TCFSL) who approved a loan of Rs 6 crore and IDBI Bank that sanctioned loan of Rs 10 crore in July this year. ICICI Bank is said to have also sanctioned an additional loan of Rs 2.92 crore to the company. The filing also mentions that shareholders have given their approval for the reappointment of Ashish Jain as the chairman and managing director of the company.
Star Housing Finance has demonstrated commendable growth in its financial performance. In the first quarter of the fiscal year 2023-24 (Q1 FY24), its total income surged to Rs 12.29 crore, marking an impressive growth of 99.51% from the Rs 6.16 crore it recorded during the same quarter the previous year. The company's net profit also saw a significant rise, reaching Rs 1.55 crore during the quarter that concluded on June 30, 2023, compared to the Rs 69 lakh registered in the corresponding quarter of the previous fiscal year.
The company's board of directors has given the green light for the issuance of unsecured/secured redeemable non-convertible debentures (NCDs) or bonds. These will be offered through private placement, with the total amount not exceeding Rs 100 crore. This strategic move aims to raise funds for the company's growth and expansion plans.
Star Housing Finance's assets-under-management (AUM) have displayed remarkable growth, increasing by 134% year-on-year to reach Rs 271.62 crore as of June 30, 2023. This momentum is further reflected in the fact that the company disbursed Rs 34.67 crore during the quarter, showcasing a year-on-year growth of 26%. Moreover, the company has managed to reduce its Portfolio at Risk (PAR) to 4.82% as of June 30, 2023, indicating timely repayments and better credit management. Within this, the gross non-performing assets (NPA) stand at 1.56%, and the net NPA is at a healthier 1.13%.
The growing support from prominent financial institutions and the company's robust financial performance in recent quarters underscore Star Housing Finance's position as a noteworthy player in the housing finance sector. The company's strategic decisions, coupled with the backing of renowned banks, position it favourably to achieve its growth and expansion objectives in the coming months.
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