Shriram Housing Finance grows 45%, crosses Rs 5,000 crore mark

Affordable housing player Shriram Housing Finance said that its AUM has grown 45% so far this year, surpassing 5,000 rupees, becoming the fifth-largest in the low-cost housing loan segment.

Shriram Housing Finance, sponsored by Shriram City Union Finance, began operations in December 2011 and has approximately 100 independent branches and more than 200 branches within its sister companies, Shriram City Union and Shriram Transport Finance. By the end of this month, its footprint will include 105 in-house stores and 218 kiosks.

MD and chief executive of Shriram Housing Finance, Ravi Subramanian has said that the AUM would have already crossed the Rs 5,000 crore mark in December but was unable to do so because of the third wave, which impacted collections.

He also said that Shriram Housing Finance is now the fifth-largest affordable housing lender and hopes to climb up the position by the end of this month. He said that hopefully the company will overtake the present number of four by the end of this month and become the fourth-largest with an AUM of Rs 5,200-5,300 crore. 

He said that the significant improvement in asset quality, combined with decentralized underwriting operations and improved customer choice, is only 7% of around 1 lakh customers who are first-time borrowers, with sufficient emphasis on recovery. We believe that the recovery efficiency has improved by 99.7%. In December, 97% of customers paid at least one EMI in the third quarter.

He says that a significant portion of demand comes from households at the bottom of the income spectrum, especially where employment and income sources remain unofficial, they have lent to more than 1 lakh customers since its inception and the average ticket size is Rs 16 lakh.