23 hrs ago
Aditya Birla Housing Finance Targets 15% ROE While Scaling
Aditya Birla Housing Finance wants to become much bigger over the next two years.
It plans to increase the money it lends to about Rs 1 lakh crore.
The company also wants to earn a 15% return on the money invested in it.
To grow, it is opening more branches and hiring more people.
It says new investment from Advent International should support growth for the next 18-24 months.
The company will continue offering loans to prime customers, affordable-housing borrowers and construction businesses.
It expects loans to people with informal incomes to become a larger part of its business.
It is also using artificial intelligence to make work faster and reduce costs.
Aditya Birla Housing Finance aims to reach Rs 1 lakh crore in AUM over the next 8-10 quarters.
The company is targeting 15% ROE and approximately 2.4% ROA while maintaining asset quality.
It plans to add at least 100 branches this year and has already launched 67 of them.
The Rs 2,750 crore Advent International investment is expected to fund growth for 18-24 months.
The company expects informal-income affordable housing loans to rise from 6% to 11% of its portfolio.
- Who
- Aditya Birla Housing Finance and its MD and CEO, Pankaj Gadgil.
- What
- The company outlined plans to expand its loan book, improve efficiency and target a 15% return on equity.
- Where
- Across Aditya Birla Housing Finance’s housing-finance operations; the articles do not specify particular locations.
- When
- Over the next 8-10 quarters, with branch expansion planned during the current year.
- Why
- To scale the business responsibly, maintain asset quality and improve profitability through greater capacity, technology and artificial intelligence.
Key facts
- AUM target
- Rs 1 lakh crore over the next 8-10 quarters
- Return target
- 15% ROE and approximately 2.4% ROA
- Branch expansion
- At least 100 branches planned this year; 67 had already launched
- Current workforce
- About 5,900 employees after adding around 1,000
- Capital infusion
- Rs 2,750 crore from Advent International
- Portfolio mix
- Approximately 47% prime, 38% affordable and 15% construction finance
- Efficiency target
- Reduce the cost-to-loan-book ratio from about 2.21% to 1.7% over 8-10 quarters
- AI deployment
- 22 housing-finance use cases, including 13 live applications
Sources
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