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Magma Housing Finance Targets 25% Loan Growth
Affordable housing-focused Magma Housing Finance is targeting to sell at least 25 per cent more loans in the second half of this fiscal as its business has almost returned to pre-lockdown levels. The fourth largest affordable
BY
Realty Plus
Published - Tuesday, 17 Nov, 2020
Affordable housing-focused Magma Housing Finance is targeting to sell at least 25 per cent more loans in the second half of this fiscal as its business has almost returned to pre-lockdown levels.
The fourth largest affordable housing-only player, which is a fully-owned subsidiary of non-banking player Magma Fincorp, has grown 23 per cent in the September quarter.
"We expect the second half loan sales to be clocking around 25 per cent growth and closing the current fiscal with a loan book of Rs 4,200 crore from Rs 3,554 crore as of Q2.
"What we are focusing is a 20-25 per cent loan growth on a sustained basis for the next three-four years,” Manish Jaiswal, the firm''s managing director and chief executive, told PTI.
His optimism comes from the 23 per cent loan growth during the September quarter in terms of sanctions when incremental disbursement rose by Rs 267 crore, taking the outstanding loan book to Rs 3,554 crore, despite the massive disruptions due to the pandemic.
This, coupled with an improvement in asset quality and lower cost of funds, helped it log a 30 per cent spike in net income at Rs 18.7 crore, which excludes pandemic provisions of Rs 6.5 crore.
Asset quality improved by 60 basis points (bps) to 1.6 per cent in Q2, which is well within the levels in the low-cost housing finance industry where the bad loans are under 2 per cent.
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