Shriram Housing Finance Eyes Rs 30,000 Cr Assets Under Management By 2026: Report

Mortgage lending firm Shriram Housing Finance is reportedly looking to triple its size, tap into a burgeoning customer base for home ownership in the country. 

According to a report by The Economic Times, the mortgage lender is in the process of raising $100 million by way of share sale and is also looking to double its branch network as well as manpower count in the next two-and-a-half years as part of the growth strategy.

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"Our aspiration is to take the AUM to Rs 30,000 crore by FY26 and to be the number one affordable housing finance company by then. The growth we have seen in the last few quarters with asset quality holding firms has given us the confidence for planning the next stage expansion,” Ravi Subramanian, MD at Shriram Housing Finance, was quoted as saying by ET.

Shriram Housing Finance is said to be the third largest mortgage lending company in India after Aadhar Housing Finance and Aavas Financiers.

The company has more than three-fourth of its customers belonging to the low- and middle-income groups, while 79% of its loan applicants are self-employed and 80% of the loan ticket size is under Rs 25 lakh. Its gross non-performing assets ratio was just about 1% of total portfolio.

As per the ET report, its Vision 2026 plan also includes new product launches, branch expansion and investment in technology and human resources. The company has also increased its workforce to about 45% to 2547 from 1753 and targets to take the number to 5000 by March 2026.

The company also plans to unveil approved project finance (APF) and loans for under-construction properties in a staggered manner in FY 24-25. The Mumbai-based lender also plans to add 100 branches to its distribution footprint, taking the total strength to over 230 by March 2026.

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It will expand its footprint mainly in the northern region and plans to penetrate deeper into  Andhra Pradesh, Telangana, Maharashtra, Karnataka, Gujarat, Rajasthan and Tamil Nadu, the company said.

The ET report also revealed that Shriram Housing Finance has witnessed 44% compounded annual growth while the AUM doubled in just about 17 months from Rs 5000 crore at the end of February 2022, over the past four years.