Chennai-based Aptus Value Housing Finance plans to grow its assets under management (AUM) by 30% annually over the next three years, a senior company official said.
Talking to FE, P Balaji, MD, Aptus Value Housing Finance, said: “Our goal is to reach `25,000 crore in AUM by FY28, which requires us to grow 30% annually over the next three years.”
The affordable housing loan provider aims to achieve this through a mix of branch expansion, a higher ticket size, and improved loan officer productivity.
Balaji said the company is expanding its network in a contiguous manner, ensuring new branches are close to existing operations. The company is opening new branches in Odisha and Maharashtra, adjacent to its strongholds of Andhra Pradesh and Telangana. “We continue to expand within existing states like Tamil Nadu and Andhra Pradesh, where we maintain a branch every 50-60 km,” he added.
As of December 2024, the company had 298 branches across six states. “Our average ticket size per loan is `8.5 lakh, and we are increasing it to `10 lakh. This `1.5 lakh increase per loan will contribute to AUM growth,” Balaji said. The company also aims to raise the number of files logged per salesperson per month from three to four, driving 25% additional growth. As of December 2024, the company’s AUM stood at `10,226 crore, registering 27% year-on-year growth.
Balaji said the Reserve Bank of India’s recent 0.25% repo rate cut would further boost affordable housing demand. “The housing shortage is particularly acute in Tier 2 and Tier 3 cities, where we operate, and demand in this segment remains strong,” he said, adding that the company is confident of achieving 30% annual growth over the next three to four years.
Further, he said the rate cut would support net interest margin (NIM) expansion.
The company’s outstanding borrowings stood at `6,455 crore as of Q3FY25, with 47% linked to fixed rates and 53% to variable rates. “Within the variable portion, 30% is linked to MCLR, while 23% is tied to market-related rates. Since the repo rate was cut by 0.25%, we expect to see some benefit in the coming months, depending on the rate reset cycle agreed upon with our lenders,” he said.
For the 30% linked to MCLR, Aptus expects the impact will take longer,
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