Repco Home Finance Ltd (RHFL), Chennai-based housing finance firm, has set a target of achieving Assets Under Management (AUM) of ₹18,000 crore and loan disbursements of ₹5,000 crore during FY27 as it steps up growth across key markets.
“We want to disburse about Rs.5,000 crore and increase our AUM to Rs.18,000 crore. Two years down the line, we will be in a position to achieve Rs.25,000 crore AUM,” said Managing Director and Chief Executive Officer T. Karunakaran said during earnings call.
Aggressive growth strategy
During FY26, RHFL achieved disbursements of ₹4,000 crore and plans to increase this to around ₹5,000 crore in the current financial year. At the same time, RHFL aims to sustain quarterly disbursements above ₹1,000 crore while maintaining asset quality and underwriting standards.
He said repayments and prepayments are expected to be around ₹2,940 crore, of which about ₹2,060 crore would contribute to AUM growth.
The company is taking measures to arrest pre-closures and repayments, while continuing to pursue aggressive disbursement growth without compromising credit quality.
Focus on cost of funds
RHFL has secured ₹600 crore refinance support from the National Housing Bank (NHB), which is expected to help lower borrowing costs by around 10-15 basis points.
Karunakaran said the benefit would depend on the nature of the loan book offered under the refinance arrangement, including factors such as affordable housing and rural or urban classifications.
However, he cautioned that maintaining current cost of funds levels would remain challenging in the coming quarters.
Growth beyond Tamil nadu
Chief Business Officer M. Raja said the company expects stronger growth from non-Tamil Nadu markets, particularly Karnataka, Andhra Pradesh and Telangana.
He added that Maharashtra, Madhya Pradesh and Rajasthan are also showing encouraging signs of growth and are expected to contribute meaningfully to business expansion during FY27.
Karunakaran said the company remains confident of reaching ₹25,000 crore AUM over the next two years.