Aavas Financiers rose 2.76% to Rs 1,093.10 after the company said it received $60 million loan from the Asian Development Bank to improve access to housing finance for lower-income borrowers in India.
The Asian Development Bank (ADB) has signed an agreement to lend up to $60 million in Indian rupee equivalent to Aavas Financiers (Aavas), a housing finance company in India, to improve access to housing finance for lower-income borrowers in the country, particularly women.The loan is disbursed under ADB's supporting access to housing finance for women in lower-income groups and in lagging states project. Aavas will use the funds to provide housing finance to women in low-income communities either as primary borrowers or co-borrowers.
India is experiencing a severe housing shortage estimated at 18.7 million units in urban areas and 43.7 million units in rural areas, mostly affecting low-income groups. They face several challenges in obtaining mortgages including a lack of documents to prove their incomes.
Aavas is one of the largest housing finance companies in India's affordable housing segment. It has more than Rs 7000 crore in assets under management and 245 branches across 10 states as on 31 December 2019.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members49 from the region. The announcement was made during trading hours today, 30 March 2020.
Meanwhile, the board of Aavas Financiers has approved the allotment of 4,444 secured, rated, unlisted, redeemable, transferable and interest-bearing, non-convertible debentures of face value of Rs 10 lakh each, aggregating up to Rs 444.40 crore to ADB.
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On a consolidated basis, Aavas reported a 20.64% rise in net profit to Rs 67.92 crore on a 22.89% increase in net sales to Rs 239.39 crore in Q3 December 2019 over Q3 December 2018.
Aavas Financiers is a retail, affordable housing finance company, primarily serving low- and middle-income self-employed customers in semi-urban and rural areas in the country. Majority of its customers have limited access to formal banking credit. The company's product offering consists of home loans for the purchase or construction of residential properties, and for the extension and repair of existing housing units.
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