Can Fin Homes eyes 18-20% growth; says rate increases aiding margin expansion

On salaried segment, he said that he expects the share to move back to 70 percent. Additionally, he mentioned that the company will be able to manage an average ticket size of around Rs 22 lakh.

“Every quarter we are plugging highest growth in terms of book and disbursements. In quarter two, it was about 74 percent for salaried and 26 percent for self-employed; earlier at a portfolio level it used to be about 70 percent and 30 percent. I think very shortly that will be back to 70 and 30,” Kousgi mentioned.

“A lot of restrictions in terms of generating new business and also to retain existing customers helped us to get into new segments, new markets, which actually helped us to increase our ticket size from 18 lakhs to about 22 lakhs,” he added.

He mentioned that margin has expanded in the past few quarters due to rate increases. In the next one year, rate increase could be up to 1 percent which Kousgi said, is manageable. He expects housing finance companies to do well on the margin front in a rising rate scenario.

On NPAs, he mentioned that it has declined for the company over the past 7-8 quarters.

“If you look at the last seven to eight quarters for Can Fin, NPAs have been dropping in terms of percentage, and that trend should continue for all good companies in the industry for the next few quarters,” he said.