Shriram Housing Finance embarks on Vision 2026, aiming to triple its size by capitalizing on the surging demand for affordable homes. With assets of Rs 10,000 crore, it plans to expand branches, workforce, and products, aspiring to achieve Rs 30,000 crore in AUM by FY26. Notably, 75 percent of its clients are from low- to middle-income groups. Its growth journey has witnessed a 44 percent CAGR in 4 years, doubling AUM in 17 months to reach Rs 10,000 crore. It seeks to establish a pioneering position in the affordable housing finance sector while upholding asset quality.
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With assets amounting to Rs 10,000 crore as of July's closure, Shriram Housing Finance has inaugurated its Vision 2026 strategy, aimed at tripling its size and capitalizing on the growing demand for cost-effective housing. The mortgage provider, presently engaged in procuring $100 million via a share offering, is strategically augmenting its branch network and personnel, intending to double them within the next 2.5 years. Ravi Subramanian, the Managing Director, revealed that they aspire to raise their AUM to Rs 30,000 crore by FY26, simultaneously aiming to become the leading affordable housing finance entity.
He highlighted that their confidence in planning the next phase of expansion is rooted in the sustained growth and strong asset quality observed in recent quarters. At present, the company holds the third position, trailing behind Aadhar Housing Finance and Aavas Financiers. The majority of its customer base, around 75 percent, comes from low- and middle-income groups, while approximately 79 percent of loan seekers are self-employed. Loans under Rs 25 lakh account for 80 percent of the total loan quantum. Remarkably, the gross non-performing assets ratio constitutes only about 1 percent of the overall portfolio.
The ambit of the Vision 2026 strategy encompasses an array of facets, including the launch of novel products, the amplification of branch presence, and strategic investments in both technological and human resources. In the preceding three months alone, the firm has bolstered its workforce by approximately 45 percent, expanding from 1753 to 2547, with ambitious plans to attain a count of 5000 by March 2026. Among the upcoming offerings, Shriram Housing Finance is poised to introduce approved project finance (APF) and loans tailored for under-construction properties during FY24–25 in a phased trajectory.
Hailing from Mumbai and a constituent of the Shriram Group, the institution's expansion endeavour will involve the incorporation of 100 new branches, elevating the aggregate count to surpass 230 by March 2026. This strategic expansion will not only target the northern region but also encompass a deeper penetration into states such as Andhra Pradesh, Telangana, Maharashtra, Karnataka, Gujarat, Rajasthan, and Tamil Nadu.
Over the past four years, Shriram Housing Finance has showcased a remarkable compounded annual growth rate of 44 percent, with the assets under management registering a doubling trajectory within a mere 17 months, scaling from Rs 5,000 crore in February 2022 to the present Rs 10,000 crore. They achieved this feat with a record annual disbursal, surpassing Rs 4,100 crore in FY23 and Rs 1,900 crore in the first quarter of the current fiscal year. Noteworthy is the fact that the institution garnered a net profit of Rs 138 crore in FY23, manifesting a robust 71 percent annual growth rate.
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