Reliance Housing Finance targets Rs 50,000 cr AUM by 2020

Reliance Housing Finance, part of Anil Ambani-led Reliance Group, is targetting Assets Under Management (AUM) of Rs 50,000 crore by 2020 as it aims to join top-five league in the home loan market in three years.
The company saw its housing finance AUM rise by nearly 70 per cent year-on-year to Rs 6,500 crore as on September 30, 2015 and it expects to touch Rs 10,000 crore by the end of the current fiscal.
Reliance Housing Finance is a 100 per cent subsidiary of Reliance Capital, the financial services arm of Reliance Group.
"Focus on housing finance sector forms an important part of Reliance Capital's growth strategy. We will aggressively continue to grow this portfolio", Reliance Capital's Group CEO and Executive Director Sam Ghosh said.

The housing finance sector is expected to see a robust growth in the coming years on the back of the government's Housing for All by 2022 scheme.
The industry size is currently estimated at Rs 11 lakh crore and it is expected to grow to Rs 26 lakh crore by 2022, in terms of total loans outstanding.

Ghosh said that Reliance Housing Finance is targetting AUM of Rs 10,000 crore by the end of the current fiscal and of Rs 50,000 crore by 2020.
The company aims to be amongst the top five housing finance companies in next three years, he added.

"Reliance Housing Finance to focus on 'Affordable housing' in Tier-2 towns as part of its growth strategy. Our Focus would be on four states initially - Gujarat, Rajasthan, MP and Maharashtra. All these states are growing at a rate of 15 per cent in housing finance", Reliance Housing Finance Director K V Srinivasan said.
As part of its expansion plans, the company is also looking to double its network, currently in 100 towns, by the end of two years.
It will focus on the SME and self-employed category, which form over 70 per cent of the housing loan demand, and is untapped by the structured banking sector.

Reliance Housing finance has developed expertise in assessing risk in this segment through its robust portfolio under the Reliance Commercial Loan segment which focuses on SME lending, Srinivasan said.
RHF offers loans at competitive rate with lowest rate of 9.6 per cent, amongst the lowest in the private and public sector, he added.
However, there are no plans of raising capital as capital adequacy is at 19 per cent as of September 30, 2015, as compared to regulatory requirement of 12 per cent.
The company recorded 73 per cent growth in its disbursements to Rs 761 crore, 74 per cent increase in income to Rs 200 crore, and 54 per cent growth in profit to Rs 31 crore during the quarter ended September 30, 2015.