Affordable Housing
Fulfilling Dreams of Owning Homes
We are a trusted player in India's affordable home loan market, particularly among low-income households that aspire to own their dream homes. We specialise in providing loans primarily to unserved and underserved segments, within the segments of Economically Weaker Section (EWS), Low-Income Group (LIG), and Middle-Income Group (MIG) customers. These loans play a crucial role in fulfilling customers' aspirations of owning their home.
Disbursements
Gross loan book
Collection efficiency
Total borrower base
Growth in FY 2022-23 over FY 2021-22
With a primary focus on assisting first-time homebuyers, our Bank has achieved remarkable success in facilitating subsidy credits of ₹ 244 Crores to over 11,000 customers since inception (₹ 155 Crores to 7,000+ customers in FY 2022-23) through the Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme (PMAY CLSS) from the National Housing Bank (NHB).
Key Achievements of FY 2022-23
- Despite starting with challenges related to productivity, portfolio quality, and profitability, we ended the year as a profitable business with one of the most highly productive teams in the industry while also reducing Non-Performing Assets (NPA) and Portfolio at Risk (PAR) by almost 50%.
- During the first half of the fiscal year, we implemented numerous initiatives across product, process, policy, and manpower aspects. The positive outcomes of these efforts became evident in the second half of the fiscal year, with record-high disbursements in March 2023, Nil OD in the 0-12 MOB category, and a significant reduction in NPA levels (4.7% as of March 2022 to 2.6% as of March 2023).
- Regular communication with teams across different regions played a pivotal role in identifying issues, while management's support was crucial in promptly addressing them. Furthermore, our business focus has gradually shifted towards Tier II and III markets due to their advantages, including better yield, lower loan-to-value (LTV) ratios, and higher customer retention rates.
Road Ahead
Moving forward, we are focussing on harnessing the potential of the existing customer base by utilising in-house digital and analytics tools. Additionally, we are making optimal use of digital customer onboarding and servicing platforms, which are currently in the pilot phase for our Bank. As we move forward, one of our key areas of growth will be Micro Mortgages, a product introduced in FY 2022-23, that enables channel diversification.
Our guiding principle is centred around providing best-in-class services to our customers, achieved through the expertise of our skilled workforce. We are committed to enhancing our retail asset centre operations, launched in FY 2022-23, by offering tailor-made products to meet the ever-growing demand in the housing market.
