I deem it a great privilege to preside over the Sixteenth Annual General Meeting ofRepco Home Finance Limited for the financial year 2015-16.
Economic strength of India improved with FY16 GDP showing a growth at the rate of 7.6%-enabling the country to maintain the tag of the fastest growing major economy even asthe global economy at large was facing headwinds. The housing finance industry continuedits relentless growth trajectory with various estimates pegging the FY16 growth ratebetween 18% and 20%. Despite having grown at a similar CAGR (Compounded Annual GrowthRate) for the past 10 years mortgages as a percentage of GDP continues to remainin single digits.
The Housing Finance Industry gets a considerable impetus from Governments JanDhan Yojna the
Interest subvention scheme for the economically weaker sections (EWS) and low-incomegroup (LIG) an additional tax benefit of Rs. 50000 for buying a house worth upto Rs. 50lakh and taking a housing loan upto Rs. 35 lakh the Government s launch of theHousing for All by 2022 and Atal Mission for Rejuvenation and Urban Transformation (AMRUT)would also give a fillip to the housing sector.
Your Company is well poised to take advantage of the opportunity presented by thecurrent economic environment and will pursue its corporate objectives to endeavour thatthe growth trajectory traversed thus far is sustained. The Company has its presence in 121Branches and 30 SAT (satellite) centres in the states of
Tamil Nadu Karnataka Andhra Pradesh Telangana Kerala Maharashtra Odisha WestBengal Gujarat Madhya Pradesh Jharkhand and the Union Territory of Puducherry. TheCompany has also diversified its sources of fund raising through Non Convertible
Debentures and Commercial Papers. During the year loan approvals stood at Rs.3082.76crore as compared to Rs.2398.88 crore in the previous year registering a growth of28.51%. The Company disbursed loans to the extent of Rs. 2851.20 crore as againstRs.2181.15 crore in the previous year a growth of 30.72%. The loan book of the Companyat the end of financial year 2015-16 was Rs.7691.19 crore as against Rs.6012.92 crore inthe previous year representing a growth of 27.91%. The Non performing assets stood at1.31% (previous year 1.32%) of the total loans outstanding. The Profit after tax had grownby 21% from Rs.123.08 crore to Rs. 150.08 crores. The Capital adequacy ratio of theCompany was comfortable at 20.77% against the statutory prescription of 12%.
I would like to avail this opportunity to express our sincere appreciation andgratitude to the shareholders of the organization our customers Ministry of HomeAffairs Registrar of Companies Securities and Exchange Board of India National StockExchange Bombay Stock Exchange and Repco Bank for their unrelenting support. Iacknowledge the support rendered by the Board and the excellence of dedicated employees ofthe company. I place on record our thanks to the National Housing Bank for regulatorypromotional and financial support and our bankers for their continued financialassistance.
We have benefitted immensely from your constant support and sincerely hope to continueto receive the same in future.
|Date : 06.08.2016 ||(S.KrishnaMurthy) |
|Place : Chennai ||Chairman |