Kolkata, Sep 15 (IANS) Fullerton India on Tuesday said it is targeting disbursements between Rs. 500-600 crore from the very first year of its operations of the upcoming home finance company (HFC).
The HFC – poised to kick-start operations in October-November this year – will offer credit to the affordable housing sector across rural and urban India.
“The average ticket size of these loans will be in the range of Rs.6-7 lakh. We would be leveraging on our current network for HFC,” the company’s EVP and head of urban & rural business, Rakesh Makkar told media persons here.
He said the HFC will start with an equity base of Rs. 100 crore and is expected to break even in two years time.
“There is a huge potential in the housing finance segment as India presently has shortage of about six crore homes,” he said.
The non-banking financial company, owned by Singapore’s state-run investment firm Temasek Holdings has obtained the requisite clearances from the National Housing Bank (NHB) for its home finance company and operations are expected to start around November this year.
With a present loan book of Rs.12,000 crore and non-performing assets at less than two percent, the company has 445 branches pan-India with presence across 600 towns.
It reported a net revenue of Rs.1,011 crore in the last fiscal with the asset under management portfolio standing at Rs. 8,669 crore with the capital adequacy ratio at 19.6 percent.
The firm has raised 50 percent of its funds from commercial banks and another 50 percent from non-convertible debentures and commercial papers