Repco Home Finance aims at 12% growth in AUM in FY24

August 16, 2023 07:19 pm | Updated 07:19 pm IST - CHENNAI

Repco Home Finance Ltd. (RHFL) is planning to increase its assets under management (AUM) by 12% to ₹14,000 crore during FY24, said its MD & CEO, K. Swaminathan.

“We were ₹12,449 crore in the beginning of the year. We plan to reach somewhere around ₹14,000 crore by the current year-end,” he said during an analysts call.

While explaining his plan of action for the current fiscal, he said that momentum happens during the second and third quarters. Q2 and Q3 are the normal peak quarters and definitely the book growth also will be more than the 9% over Q1.

Regarding the business outlook for FY24, he said, “We plan to stick to our guidance numbers of 20% growth in sanctions and disbursements and 12% AUM growth from FY23. Gross non-performing asset (NPA) numbers planned to be brought down by at least ₹100 crore, out of which we have already reduced ₹24 crore.”

Mr. Swaminathan said that they are going to be slightly aggressive as far as recovery of NPA portfolios and Stage-III portfolios are concerned. The subsidiary of Repco Bank will continue to monitor NPA on a daily and monthly basis to bring the numbers down.

According to him net interest margin (NIM) for FY24 would be around 4.7%-4.8%. “Even though in Q1, NIM is slightly more than our guidance, I think it will stabilize around 4.7% to 4.8% by year-end,” he said.

The home loan company is planning to increase the total disbursement number from around ₹3,000 crore in FY23 to around ₹3,600 crore in FY24.

During the year, RHFL plans to have more than 200 outlets. In Q1, it opened four outlets, four more will be done in Q2. The board has given its approval for opening eight more outlets. However, the company might open five or six, he said.

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