Star Housing Finance Hits 500 Crore AUM In Second Quarter Ended FY25

Star Housing Finance Limited (Star HFL), a company listed on the website of BSE (BSE: 539017), has continued to perform exceedingly well in the retail home finance sector recording strong business and financial performance for the quarter ending September 30, 2024. The scale of the Company's Assets Under Management (AUM) expanded to a considerable Rs. 517.84 crore from an earlier 'barely above' 500 crore at a stunning 62% growth year on year. This milestone is a clear reflection of the strategic focus of Star HFL on the outflows of disbursements and outflows sustaining measures aimed at ensuring the growth is sustainable.

There has been a growth of income in the company also, interest income grew by 60.56% during the year supported by growth in the loans disbursed. The Net Interest Margin (NIM) was reported at 7.47% which is still quite healthy and shows effective management of resources. Earnings per share have wracked Alan Patrick scooped up the bull by turning his fortunes around, PBT has grown by 78.28% and now stands at R3.94 crores while the PBT for the period was reported to be 3.06 crores showing a growth rate of 47.83%. An impressive net worth of Rs 140.23 crores was also retained by Star HFL and the leverage was moderately low at 2.68x showcasing the robust stance of the company financially.

The asset quality continues to be a core central focus of the strategies of the company.

The total Non-Performing Assets - GPRA ratio' has been very closely maintained at 1.56%, and net NPAs have been at 1.09%, indicating appropriate credit policies and an efficient risk management system. These figures highlight Star HFL's intention to sustain itself in a competitive market.

To support its growth plans, Star HFL on the other hand, during the quarter successfully obtained incremental liabilities of Rs. 70 crore from prominent institutional partners. This infusion of funds enhances the liquidity position of the company and adds the much-needed capital to further enhance its loan book. With a committed team of more than two hundred and fifty housing finance professionals, Star HFL is well poised to cater to the ever-increasing need for affordable housing finance in low-coverage areas. The company has its operations across Maharashtra, Madhya Pradesh and some parts of Gujarat, Rajasthan, NCR, and Tamil Nadu which enables it to meet housing finance requirements of Economically weaker sections and low-income groups.

Mr. Kalpesh Dave, Director & CEO, Star HFL while talking about the performance mentioned feeling quite content to have scraped the Rs. 500 crore AUM target. Further, he stressed that the company's focus has been centred around the team's strategic growth with strong operational bandwidth.

Mr. Dave emphasized Star HFL's commitment to increasing its branch network, enhancing its liability base, and providing significant returns to stakeholders.

Founded in the year 2009, Star HFL has been providing long-term housing finance for affordable housing in the framework of the Pradhan Mantri Awas Yojana (PMAY). The corporation acts as a Primary Lending Institution (PLI) and assists customers through the CLSS scheme, enabling access to subsidies for qualifying beneficiaries. Headquartered in Mumbai, Star HFL continues to be committed to its vision of providing housing finance in the affordable segment in the lower middle-class households enabling them to become owners.