Can Fin Homes says housing finance industry in sweet spot; expects 18-20% AUM growth in FY22

“Currently we are in a sweet spot when we talk about the industry. Interest rates are very competitive, property prices are attractive, there is robust demand, and collection efficiency is at its peak. So if you look at Can Fin Homes, last-to-last quarter was the best ever quarter and in Q2FY22, we are hopeful of beating Q4FY21,” he said.

In terms of loan growth target for FY22, he said, “We are looking to grow at about 18-20 percent compared to last-to-last year. It will be good not just for Can Fin Homes but for the entire industry.”

Also Read: Only 1% companies opted for RBI’s Resolution Framework 2.0: CRISIL

On loan portfolio, he mentioned, “A few quarters back, the portfolio was 70 percent salaried and 30 percent self-employed professionals and non-professionals (SENPs) but after COVID-19, this 30 percent SENP came down to about 18 percent. It was more by design. Probably in next couple of quarters, we will see that the ratio will again come back to 70:30. We are pretty much focused on both salaried and SENP.”

Also Read: MC Pro Ideas for Profit: MAS Financial valuation attractive for long-term investors

From Q1FY22, Can Fin Homes increased its prices because of very good market and robust demand. “You will see margins inching up from this quarter onwards,” he shared.