“We are hungry for development. We keep sending feelers to potentials takeover Target,” Managing Director Ravi Subramanian told ET.
The lender, which primarily focuses on the affordable housing segment, has increased its loan book by 65% to Rs 3,910 crore at the end of June, from Rs 2,369 crore a year ago, due to disruptions and disruptions caused by the pandemic. Despite the economic stress. Now it aims to reach Rs 10,000 crore by March 2024.
The company was looking to acquire Fullerton India Home Finance last year Sumitomo Mitsui Financial Bought it, according to people familiar with the matter.
“We are targeting companies with assets of around Rs 1,500 crore, which can provide us with sustainable growth in the future. We don’t want to buy only the home loan portfolio, Subramaniam said in an interview.
It disbursed Rs 1,005 crore in the March quarter, of which Rs 366 crore was on account of purchases.
Shriram City Union Finance, which holds an 81% stake in the company, will invest Rs 300 crore in the December quarter, which will capitalize it substantially for next year. The parents had already injected Rs 200 crore in April. Valiant Partners holds the remaining 19% stake in the housing finance lender.
It is present in 16 states but focuses on 6-7 states where other Shriram Group companies have significant presence and enjoy brand visibility. The affordable housing segment contributed about 70% of its business.
It is focused on leveraging Shriram Group’s distribution network to accelerate growth with the group’s credit tested customers. It has launched Griha Purti, a cross-selling initiative in Andhra Pradesh and Telangana and plans to expand the initiative to Tamil Nadu and Karnataka next year. The group has about 2,000 branches across the country.
“Our collection efficiency on fresh loans is around 99%, which is around 80% of our portfolio,” said the MD.