Motilal Oswal Housing Fin plans to increase its balance sheet to 10,000 cr in 3-4 years

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Motilal Oswal Housing Finance Ltd (MOHFL) plans to grow its balance sheet to at least 10,000 crore over the next three to four years through organic growth and portfolio acquisitions.

The balance sheet of the affordable housing finance company, which is a subsidiary of Motilal Oswal Financial Services Ltd, stood at 3,576 crore, including loans totaling 3,360 crore, at the end of September 2021.

Arvind Hali, Managing Director and CEO of MOHFL, said, “We are looking at 30-40% year-over-year (year-over-year) growth. We predict that over the next three or four years we should have a balance sheet of at least 10,000 crore. ”

Hali pointed out that MOHFL’s pedigree, strong capital (registered capital of around 600 crore and net worth of nearly 1,000 crore), a distribution network (104 branches in 11 states), people, processes and technologies will help it reach the target-line.

“We are fairly well capitalized and our leverage (total borrowing / equity) is only 2.5 to 3 times. So we have enormous leeway to leverage our own track record, ”said Hali.

Read also: Self-employed, self-employed attract the attention of housing funders

On the loan portfolio down 7% year-on-year to 3,360 crore at the end of September 2021, the head of MOHFL observed that there had been repayments to some extent due to the government-linked grant scheme. credit (CLSS) and that business was moderate in the first quarter of FY22 due to the second wave of Covid-19.

“In April-May 2021, activity was almost at a standstill. But from June we saw an improvement… In fact, we started to exceed the pre-Covid numbers, ”said Hali.

The MOHFL (formerly known as Aspire Home Finance Corporation Ltd) focuses on lending to low income groups / LIG (annual income between 3.00,001 and 6 lakh) and the average amount of its home loans is between 9 and 10 lakh. interval.

“We focus on clients who are self-employed, those who receive a salary in cash, among others. We have developed a credit underwriting skill to respond to these customers. Much of our business is focused on supporting self-build where clients already own land and we are funding the construction of the house, ”said Hali.

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Regarding the challenge of clients moving their loan from one lender to another for a lower interest rate, the head of MOHFL noted that this happens on both sides – MOHFL supports loans from one lender to another. other banks and they also continue to take over. “So on a net-net basis, we seem to be benefiting from it. We are taking more clients than we are losing, ”he said.


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