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Shriram Housing Finance Limited, a leading affordable housing finance company announced its results for H1 FY’24. Assets Under Management (AUM) crossed the INR10,000 Cr milestone, with the company ending H1 with AUM of INR 10,816 Cr. The disbursals for the first half of the year stood at INR 3,591 Cr, up 95% YoY. The company has maintained an accelerated growth momentum with AUM doubling over the last 18 months, coupled with consistent improvement in asset quality.

Asset quality improved with Gross Stage-3 assets at 1.08% (including RBI circular dated 12 Nov’21), a 44 bps YoY improvement. Net Interest Margins in H1 FY’24 also improved by 65 bps YoY to 7.7%. PAT for H1 FY’24 stood at INR 93.9 Cr, a growth of 46% YoY.

Expanding Distribution Network: The company is investing in growing the distribution by scaling up its network footprint across the identified key focus states. The total branch network of the company stood at 137 branches as on Sep’23. The company also added over 1200 employees during the first half of the current FY to stretgthen its reach across these branches. The total employee strength now stands at over 3000. SHFL will continue to expand its distribution footprint and targets to add 13 new branches in H2 FY’24. SHFL is a dominant player in Tamil Nadu and Gujarat; and is aiming for the leadership position across few other focused geographies.

Technology at Work: Shriram Housing Finance continues to invest heavily to grow use of digital platforms to service the customer lifecycle. This is planned through creating comprehensive coverage of product, process, data and governance. The company receives over 95% of its application through digital customer onboarding facilitated via its inhouse onboarding app - GrihaPoorti. The digital driven approach has enabled better operational efficiencies, faster underwriting and customer convenience.

Commenting on the results Ravi Subramanian, MD & CEO, Shriram Housing Finance said, “We are delighted to be amongst the top 3 Affordable Housing Finance players in the country. We continue to see strong demand for housing loans, especially outside of the metros. We primarily cater to the housing needs of small businessmen across the geographies we operate. A buoyancy in Home Loan demand in this segment has lead us to expand our distribution network across the Tier 2/3 locations. We would continue our investment in scaling

up the branch network during the course of the year.  Our AUM has doubled over the last 18 months, with our portfolio quality being amongst the best in the industry. We would continue to build our businesses at the same pace with clear focus on risk controls.” 

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