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SRG Housing Finance Ltd.

BSE: 534680 Sector: Financials
NSE: N.A. ISIN Code: INE559N01010
BSE 00:00 | 12 Aug 165.95 2.35
(1.44%)
OPEN

159.50

HIGH

166.50

LOW

159.50

NSE 05:30 | 01 Jan SRG Housing Finance Ltd
OPEN 159.50
PREVIOUS CLOSE 163.60
VOLUME 966
52-Week high 185.00
52-Week low 112.05
P/E 10.20
Mkt Cap.(Rs cr) 216
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 159.50
CLOSE 163.60
VOLUME 966
52-Week high 185.00
52-Week low 112.05
P/E 10.20
Mkt Cap.(Rs cr) 216
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SRG Housing Finance Ltd. (SRGHOUSING) - Chairman Speech

Company chairman speech

MANAGING DIRECTOR'S MESSAGE

Notably even in such challenging times we delivered strong growthcompared to the previous year; and we stand resilient and prepared for the unfoldingcircumstances

Dear Shareholders

Trust you all are safe and in good health.

The COVID-19 pandemic has tested the resilience and adaptability of awide range of businesses and sectors. We are operating in an unprecedented situation withrecurring waves of the pandemic impacting lives around us. The overall businessenvironment remained muted during the year with demand slackening in almost all sectors.

At SRG Housing we responded proactively to the situation and ensuredbusiness continuity with our technology platforms and customer-centric approach. Notablyeven in such challenging times we delivered strong growth compared to the previous year;and we stand resilient and prepared for the unfolding circumstances. Our extraordinaryteams worked tirelessly to deliver value to our clients and communities.

Our agility and resilience turned the COVID-19 adversity into anopportunity. As migrant laborers began shifting to their hometowns we satiated theirneeds for housing security particularly in rural and semi-urban areas to help them avoidresidential vulnerability practice social distancing and stay at home to fight the virusand bring about a meaningful change in their lives. As consumption in these citiesincreases it will also improve liquidity in the system and increase consumption demand.Our measures are aimed at providing housing security and improving the livelihoods ofthese migrant laborers.

performance for 2020-21

We have an unwavering goal of providing easy home loans in semi-urbanand rural regions. During the year our Assets Under Management (AUM) stood at Rs. 325.40crore from '274.24 crore in the previous year while disbursement stood at '89.88 crorecompared to '48.48 crore in the previous year.

Net Interest Income for the year was '36.17 crore as against '35.09crore in 2019-20. Profit after Tax grew to '18.83 crore from '17.97 crore in the previousyear. Our NPAs continue to be low at 0.42% with an average Loan to Value (LTV) ratio of41.48%.

strategic priorities and business advancements

Over the years we have steadily evolved as an organization neverlosing sight of our motto and the objective of turning the dream of home ownership into areality for the unserved and underserved masses. Having said that what started as a meansto fulfill dreams is today one of the key growth areas in the industry. Rural housing andcredit requirement are seen as thriving opportunities. The housing sector

is now poised for growth. Despite the expansive efforts the mortgagepenetration level in India is quite low offering several opportunities to scale up ourbusiness. Our objective is to cater to the rising demand for housing finance. The housingfinance industry's buoyancy is further endorsed by growth drivers such as risingdisposable incomes personal income tax benefits increasing urbanization and growth ofthe rural economy. We are well positioned to support government schemes like Housing forAll and Pradhan Mantri Awas Yojana (PMAY) to cater to the housing needs of millions ofIndians.

Our capability and competence in this segment provide us a distinctedge. Today we have 34 branches across rural and semi-urban areas across the country. Ournetwork is well supported by an outstanding team of people who have sound market knowledgeand enjoy strong relations with customers. We have also achieved digitalization of ourprocesses efficiently further reducing the turnaround time of loan processing and finaldisbursement. Our processes are scalable and increasingly oriented towards automation.During the year we continued our focus on innovating and creating newer and simpler waysto improve efficiencies and processing reduce the turnaround time and streamlinecollection and disbursement channels. With implementation of SRG SRAJAN our key objectiveis to eliminate redundancies and enhance efficiencies and productivity of our resources.

During the year we onboarded Mr. Arun Mishra and Mr. Saurabh Rajawatto our management team. These individuals come with dynamic experience and expertise andhave been appointed in key roles across various industries prior to joining our Company. Iam quite confident that these new members will further strengthen our leadership team andfructify our expansion plans.

Along with this we are also focused on enhancing our presence byopening branches in the neighborhood and with a larger and experienced team of resources.Our extensive presence enables us to add value and to improve the quality of lives of ourcustomers. Further we are adequately capitalized as our asset quality and liquidityposition remains strong. We have raised funds amounting to Rs. 150 crore including Rs. 40crore undrawn to support our expansion plans during the year. Of this Rs. 150 croreraised Rs. 125 crore were under various schemes of National Housing Bank and under TLTROscheme of RBI.

business outlook

Notwithstanding the near-term challenges we remain steadfast in ourefforts towards becoming an even bigger player in India's housing finance sector. Theunprecedented disruptions in the current times have emphasized that our agility andcustomer-centricity are necessary attributes to navigate through the adversities. Mostimportantly two decades of rich experience and expertise in the rural segment gives us acompetitive edge in the industry.

We are now moving ahead with a clear direction to achieve sustainedhigh growth with our consistent efforts. We continue to serve our customers with passionand commitment and invest in advanced technologies to drive efficiencies and enhancecustomer experience. In addition we plan to open new branches in regions with highpotential and enhance our geographic reach across the country. With immense opportunitiescoming underway we are focused on capitalizing our competencies to drive growth and meetthe home ownership dreams of people of all income groups.

I am delighted to state that even amidst the difficult circumstanceswe added two new lenders which shows their trust in our business model. The NationalHousing Bank has refinanced us Rs. 65 crore in 2020-21 which shows regulatory confidencein our compliance and systems. Strong asset quality despite the pandemic boosts ourconfidence in our underwriting model. Moreover our consistent investments in technologyand IT systems under SRG SRAJAN helped ensuring smooth business functioning even duringthe lockdown.

conclusion

I would like to take this opportunity to thank our stakeholders fortheir invaluable guidance and constant trust. Above all I would like to thank ourenthusiastic teams who have worked tirelessly to ensure uninterrupted business operationsin these challenging times.

Warm Regards
Vinod K. Jain
Managing Director
DIN: 00248843

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