SRG Housing Finance Limited — PPTs, 01-05-2025: Investor Presentation

1. Financial Highlights:

AUM reached ₹759 Cr, up from ₹601.6 Cr year-on-year, supported by steady disbursements of ₹106 Cr. Total income increased to ₹154.54 Cr, with net interest income at ₹72.33 Cr, reflecting operational efficiency. Profit after tax improved to ₹24.39 Cr, aided by controlled provisions and moderate expense growth. Asset quality strengthened with GNPA at 1.84% and NNPA at 0.61%. Spread earned stood at 9.88%, while capital adequacy remains robust above 67%.

2. Strategic Initiatives & Growth Drivers:

Focus remains on rural housing finance targeting first-time credit users and underserved customers with loans under ₹10 Lakh and low LTV under 50%. The digital platform “SRG SRAJAN” accelerates loan processing, credit evaluation, and collections. Branch presence expanded to 90 locations across 7 states, enhancing rural market reach.

3. Business Developments:

Raised ₹49.93 Cr through preferential equity to bolster capital for growth. Funding diversified across 32 lenders including banks and NBFCs. Credit policies continue to evolve to support new customer segments with targeted credit bureau integration.

4. Market Position & Competitive Advantage:

SRG commands a niche leadership in rural housing finance, with ~75% of loans to self-employed and ~95% involving women co-borrowers, enhancing portfolio stability. Competitive edge arises from faster turnaround (~15 days), streamlined documentation, and localized risk management.

5. Investor Implications:

Robust AUM growth, margin expansion, and improved asset quality signal positive growth potential in a niche rural segment. Execution risks around geographic expansion and portfolio diversification require monitoring, but strong capitalization and digital capabilities suggest scalable, sustainable returns.