Aditya Birla Housing Finance targets 25-30% growth – Industry News

Aditya Birla Housing Finance (ABHFL) is targetting a 25-30% growth in Assets Under Management (AUM) for FY25, Pankaj Gadgil, managing director, ABHFL and head, Digital Platforms and Payments Strategy, Aditya Birla Capital, said. ABHFL’s lending book value was at Rs 18,420 crore as of March 31, 2024.

Gadgil said they had grown 33% year-on-year (y-o-y) in FY24 compared to the 15% industry growth. There was a lot of headroom for them to grow their housing finance business, he said. ABHFL is a full-stack mortgage player offering prime and affordable home loans, loans against property and construction finance for developers. Around 60% of the business was from housing and 40% from the non-housing segment.

The housing finance company was looking to double the book in three years, Gadgil said. The growth would be largely driven by digital platforms and the Aditya Birla Group (ABG) ecosystem. Omni-channel digital platform, Aditya Birla Capital Digital (ABCD), launched on April 16, offers lending, insurance, mutual funds and payments, has already had one lakh registrations and the goal was to reach 30 million customers in three years.

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According to Gadgil, the housing finance firm had 12,000 channel partners, but the ABG ecosystem allowed them to work with two lakh partners to cross-sell and upsell. ABHFL had 135 branches, while the group had 1,440 branches offering financial services, which would drive business for them. Around 10% of the business was being generated from this ecosystem. Further, 1.87 lakh employees of the group were another significant funnel, with special pre-approved loans offered to them.

The average ticket size of ABHFL loans was Rs 28 lakh, and 41% of its portfolio comprised the affordable housing segment, primarily catering to tier-II and tier-III locations. The average developer finance was at Rs 20-22 crore. Their borrowing costs were among the lowest at 7.66% with a AAA long-term credit rating, Gadgil said. They were among the five HFCs among 92 companies to get this rating, he added.