Shriram Housing Finance Aims for Rs 30,000 Cr Assets Under Management by 2026: Report
Mortgage lending company Shriram Housing Finance reportedly has ambitious plans to significantly expand its operations in response to the growing demand for homeownership in India. The firm is reportedly aiming to triple its size by raising USD 100 million through a share sale. As part of its growth strategy, it also intends to double its branch network and employee count over the next two and a half years.
The Managing Director of Shriram Housing Finance, Ravi Subramanian, expressed confidence in the company's growth trajectory, citing recent positive asset quality trends as a driving factor. He shared aspirations to increase the Assets Under Management (AUM) to Rs 30,000 crore by the fiscal year 2026 and to establish the company as the leading affordable housing finance entity in India.
The majority of Shriram Housing Finance's customers are from low- and middle-income groups. A substantial portion of its loan applicants, around 79 per cent, are self-employed, and the loans are predominantly under Rs 25 lakh. The company has maintained a low gross non-performing assets ratio, at approximately 1 per cent of its total portfolio.
The company's Vision 2026 plan encompasses various initiatives, including new product launches, branch expansion, technological advancements, and human resource investments. It has already increased its workforce by 45 per cent, reaching 2,547 employees from 1,753, with a target of reaching 5,000 by March 2026.
Shriram Housing Finance plans to introduce approved project finance and loans for under-construction properties in a phased manner during the fiscal years 2024-25. It also intends to expand its branch network, particularly in the northern region, and to penetrate deeper into states like Andhra Pradesh, Telangana, Maharashtra, Karnataka, Gujarat, Rajasthan, and Tamil Nadu.
Recent growth trends for Shriram Housing Finance have been impressive, with a compounded annual growth rate of 44 per cent. The company's AUM doubled in just 17 months, growing from Rs 5,000 crore at the end of February 2022 over the past four years.
