June 14, 2024

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IIFL Home Finance AUM Crosses Rs 35,000 Cr

3 min read

IIFL Home Finance Limited (IIFL HFL) has seen its Asset Under Management (AUM) swell from Rs 28,512 cr in FY23 to Rs 35,499 cr in FY24, witnessing a 25% YoY growth, making the company India’s largest affordable housing finance company with an average ticket size of Rs 14.26 lac.

Basis the exchange reporting on May 6, 2024, the company with over 20% shareholding of Abu Dhabi Investments Authority (ADIA), saw its the revenue from operations rise from Rs 2,712 cr in FY23 to Rs 33,17 cr in FY24, recording a 23% YoY growth. The Profit After Tax saw a 32% jump from Rs 768. cr in FY 23 to Rs 1017 cr in FY 24. The NIM’s saw an improvement of 80 bps and strengthened from 6.5% in FY 2223 to 7.3% in FY24, with capital adequacy ratio of 42.7%. The Gross NPA also saw over a 60 bps improvement from 2.1% in FY23 to 1.5% in FY24. The Company has the lowest cost to income ratios amongst all affordable housing companies in the country.

Monu Ratra, ED and CEO of IIFL Home Finance, said “IIFL Home Finance remains committed to providing affordable home loans, particularly to EWS and LIG segments, with a focus on first time home buyers and women borrowers/co-borrowers. We have built a strong moat in India’s mortgage lending space and our focus on operational excellence and technology led solutions have resulted in not only growth in AUM, increase in NIMs, reduction in credit cost resulting in better profitability but also fetching more customers who believe in us. The active customer base increased from 202885 to 281514 which reimposes customers faith in the organization and its offerings.

It’s a privilege to have support of investors such as ADIA and DFIs such as DFC, IFC and ADB who have shown trust in us. In just a decade, we have grown from a sub Rs 2,000 cr AUM to a Rs 35,499 crs AUM today! This reflects our commitment to attending to the underserved segments. Our financial performance is amongst the best in the industry, and the next 3 years will see an average growth of 20% in our AUM YoY, with a strong play of phygital operations.

In coming years, while we plan to expand our reach with the use of our digital capabilities, we will focus on tapping the deeper geographies of the 17 states we are present in. States such as Gujarat, Rajasthan and others exhibit a huge potential of demand of housing and subsequent loans. We are also working on technological interventions which will help us built customized application process for customers from tier 3 and 4 markets, resulting in smoother customer experience and eventual lesser loan approval time.”

IIFL Home Finance Ltd., a champion for sustainable housing practices, also secured a total funding of over $ 450 million in FY 23-24 from DFIs such as U.S. International Development Finance Corporation (DFC), International Finance Corporation (IFC), and others to support affordable and green housing for low-income and economic weaker sections. This not only reinforces IIFL HFL as a leading affordable housing company but also aligns with the government’s vision of Housing For All, promoting financial inclusion, environmental and social responsibility, and will be instrumental in addressing the affordable housing gap in India.

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