Aavas Financiers looks to maintain 2.5% return on asset in near term

Shares of Aavas Financiers debuted at Rs 746, a 9 percent discount to issue price of Rs 821. Sushil Agarwal, director and CEO, spoke to CNBC-TV18 about the company's business plans and outlook.

“The way we work, we want to have a conservative and consistent growth approach and we always work on 2.5 percent return on asset (RoA) and except one quarter, we have never gone below that 2.5 percent RoA. Right now, our RoA for last three quarters is 3 percent but in the near-term we are hopeful that we will be able to maintain the same 2.5 percent RoA, which is our business philosophy,” he said.

“We were able to maintain our spreads and the feel level, the capital coming in and the distribution channel which we have already created, we will be able to maintain these kind of spreads,” Agarwal added.