Aadhar Housing Finance Targets ₹25,000 Cr AUM by FY25 End

Aadhar Housing Finance, a prominent player in India’s affordable housing finance sector, is poised to achieve significant growth, with its Assets Under Management (AUM) projected to surpass ₹25,000 crore by the end of the current financial year.

Impressive Growth Trajectory

As of September 30, 2023, the company’s AUM stood at ₹22,817 crore, marking a substantial rise from ₹18,885 crore in the same period last year. Rishi Anand, MD and CEO of Aadhar Housing Finance, highlighted the robust growth rate of 23-24%, which positions the company to reach an AUM range of ₹25,000-26,000 crore by March 2025.

Focus on Affordable Housing

Specializing in the low-income housing segment, the company’s average loan ticket size is ₹10 lakh, with a loan-to-value ratio of 59%. Notably, 56% of its portfolio serves salaried customers. The firm reported a 24% increase in profit, reaching ₹428 crore in H1 FY24 compared to ₹344 crore in the previous year.

Strong Asset Quality and Collection Efficiency

Aadhar Housing Finance continues to maintain high asset quality, with Gross Non-Performing Assets (NPA) declining by 6 basis points to 1.29%. Additionally, its collection efficiency remains robust at 99%, reflecting its disciplined approach to credit management.

Funding and Expansion Plans

To support its growth ambitions, the company plans to raise ₹500 crore via non-convertible debentures in the coming months. It is also exploring external commercial borrowings to diversify its funding sources further.

On the expansion front, Aadhar Housing Finance aims to strengthen its distribution network by opening 50 new branches within the next four months. With an existing network of 545 branches across 545 districts in 21 states, the company added nine new branches this quarter, bringing the total to 22 new branches in FY24.

Expanding Reach

The company’s expansive distribution network has enabled it to serve over 2.77 lakh live accounts across the country. Since its listing on the stock exchanges in May 2023, Aadhar Housing Finance has focused on scaling operations and deepening its presence in underserved regions.

Conclusion

With a clear focus on growth, asset quality, and customer-centric services, Aadhar Housing Finance is well-positioned to become a key driver in India’s affordable housing finance market. Its strategic initiatives in funding, branch expansion, and operational efficiency demonstrate its commitment to supporting India’s housing finance ecosystem.

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