Reliance Home Finance (RHFL), a subsidiary of Reliance Capital, today said it is targeting to achieve an assets under management (AUM) of Rs 50,000 crore by 2021 and is focusing on affordable housing for future growth.
"With all the subsidies and tax sops that the government is providing, the overall mortgage sector is growing at 18 per cent and we are focusing on the affordable housing segment, which is growing at 30 per cent per annum," RHFL chief executive Ravindra Sudhalkar told reporters here.
"If all these initiatives are on track, then we expect our AUM to reach Rs 50,000 crore by 2021," he said, adding that the company's total AUM as on March 31, 2018 is Rs 16,379 crore, registering a 47 per cent year-on-year (YoY) jump.
In FY18, RHFL grew at a faster pace than the industry, and significantly improved profits, driven by continued focus on operating efficiencies and emphasis on self-employed customers and affordable housing, both of which have a very high growth potential, according to Sudhalkar.
For the year ended March 31, 2018 the company made disbursements of Rs 8,695 crore, a YoY increase of 19 per cent, he said.
Its total income increased by 46 per cent at Rs 1,671 crore and profit before tax by 97 per cent at Rs 272 crore.
In the March quarter as well, the company's total income increased by 20 per cent YoY to Rs 450 crore and the profit before tax by 116 per cent to Rs 90 crore.
The cost-to-income ratio for the firm improved to 38 per cent in FY18 against 55 per cent in FY17, while gross NPA ratio remained stable at 0.8 per cent as on March 31, 2018.
The company has expanded its network to 54 cities catering to 125 locations, with over 45,000 client accounts, Sudhalkar said.
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