PNN
Mumbai (Maharashtra) [India], October 26: Star Housing Finance Limited (Star HFL), a BSE listed (BSE Scrip code BOM: 539017) a professionally run rural focused retail home finance company has continued its growth momentum reflecting in the Business and financial numbers for the half year ending September 30, 2023.
The Company has achieved milestones across asset and liability side of the business during the period and has continued expanding its footprints across existing and new geographies. Courtesy this performance, the financial numbers have been robust for the period.
Key Performance Highlights for the period ending/as of Sep 30, 2023:
Business Numbers: AUM increased 110% y-o-y to Rs. 319.43 crs. The Company disbursed Rs. 108.30 crs registering y-o-y growth of 49%. Star HFL has now provided housing finance assistance cumulatively to more than 4000 Indian families in EWS/LIG segment towards purchase/construction of own home.
Asset Quality Remains Intact: PAR (0+ days past due) stood at 4.52%, of which GNPA stands at 1.46% and NNPA as of Sep 30, 2023 stands at 1.08%.
Income Growth: Interest income grew by 92.88% y-o-y and total income grew 75.53% y-o-y for the half year.
Profitability: PBT and PAT registered 26.25% and 50.16% y-o-y growth respectively.
Network Expansion: Star HFL expanded to North with a presence in Ghaziabad in NCR and is now present across its operational geographies with 20 physical offices and 25 digital PoPs. Star HFL has 200+ housing financial professionals across geographies and business functions.
Traction in Liability: The Company received highest ever single sanction of Rs 50 crs from the State Bank of India. During the period, Star HFL has got incremental sanction of Rs 158.42 crs credit lines from 11 banks and financial institutions of which Rs 88.42 crs has been drawn-down. The pipeline remains robust to cater to the growth aspirations for the second half of FY'2023-24.
Digitization: Deployment of core lending suite for end-to-end processing of home loan applications is in progress.
Employee Ownership: Continuing with the philosophy of employee ownership, Star HFL board during the period has approved the ESOP II scheme for eligible employees.
Credit Rating Revised: Rating partners have acknowledged the quality growth exhibited by the Company and resulting in credit rating upgrade by CARE for bank loan facilities to CARE BBB/Stable.
Speaking on the H1 performance Kalpesh Dave CEO of Star HFL said, "We are happy to register strong growth in H1 and to have carried forward the growth momentum in the second half of the financial year. While growth is important, our focus remains firmly on maintaining the quality of the book. New business centers opened during the period will further strengthen the branch network and diversify the loan book in existing and new geographies. Traction in liability gives us confidence to plan and execute asset growth for the year. We shall continue to invest in creating capacity through expansion, on boarding of quality manpower and digitization of our processes. Our endeavor in second half of the year would be to improve productivity levels across business operations which in turn will enable optimizing the bottom line and return ratios".
Ashish Jain, MD of Star HFL said, "Star HFL is now a well governed company run by experienced housing finance professionals. The leadership team has led the growth journey without compromise on the quality. We are confident to cross the first milestone of Rs. 500 crs AUM soon as the traction in the business enhances further in the second half of the financial year. Strong liability machinery has made this scale up possible and we are confident to enhance and diversify our borrowing profile during the financial year. While we are happy, a long journey awaits us in the quest to become an institution of repute in retail affordable housing finance space. We look ahead with enthusiasm for more milestones to cross in this path".
Star Housing Finance Limited (Star HFL) is BSE listed rural focused housing finance company. The Company has been operational in the low-cost housing finance space since 2009. Star HFL provides long term housing finance assistance to EWS/LIG families towards purchase/construction of low-cost housing units (affordable housing) in its operational geographies. Star HFL is a professionally managed Company with a presence across states of Maharashtra, Madhya Pradesh, Gujarat, Rajasthan and Tamil Nadu. Star HFL is registered as a Primary Lending Institution (PLI) under the Pradhan Mantri Awas Yojana (PMAY) and has received subsidy for its qualified customers under CLSS scheme. Star HFL has its Registered & Corporate Office in Mumbai, Maharashtra.
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