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Buoyed by demand from home buyers, joined by credit demand from services SME players, housing finance player Edelweiss Housing Finance is eyeing its retail loan portfolio to growto about ₹7,200 crore in fiscal year 2016-17, from the current ₹5,500 crore as on August 31.
In order to achieve higher business from the home loan and SME loan segments, the company plans to expand its existing branch network of 50 to 75 by the end of this fiscal, to 100 by 2020.
“The market has remained underserved so far. The need (for finance) was there, but the same is being felt now. The market is huge and we currently have a small portion of that pie. With low base, we expect higher growth to continue till 2020, by when the overall retail loan portfolio is likely to reach ₹20,000 crore,” Anil Kothuri, Head (Retail Finance) and CEO of Edelweiss Housing Finance, told BusinessLine .
The company’s housing loans and SME loans have almost an equal share of about ₹1,500 crore each. The largest component of the portfolio is loan against property at ₹2,000 crore.
Confident of growthThe company sees the housing loan portfolio growing faster, with relatively stable property prices in non-metros. “Prices are not overheated in these cities. They (the homes) are still affordable, unlike places where more of the speculative price rise is seen,” added Kothuri. The average home loan ticket size is at ₹11-12 lakh, and is expected to gradually grow as inflation rises.
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