JM Financial Home Loans targets Rs 50 billion AUM by FY26
ECONOMY & POLICY

JM Financial Home Loans targets Rs 50 billion AUM by FY26

Manish Sheth, the Managing Director and CEO of JM Financial Home Loans, expressed the company's aspiration to increase its assets under management (AUM) to Rs 50 billion by the financial year 2025-2026. He mentioned that the company, which currently has a capital base of Rs 4.5 billion and a leverage of three times, is also keen on expanding its presence in Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu.

During the interview, Sheth provided insights into the growth strategy and financial details of the company. When asked about the growth plans, he responded that the retail mortgage business's AUM was around Rs 25 billion at the end of December 2023, showing a 65% year-on-year growth from the same quarter in 2022. The goal is to achieve an AUM of Rs 50 billion by FY26.

Sheth explained the borrowing strategy, mentioning that the borrowing profile involves bank term loans, long-tenor refinancing from the National Housing Bank, and debt instruments such as non-convertible debentures (NCDs). He emphasized the preference for long-tenor borrowing due to the long-term nature of home loans.

Regarding the expansion plan, Sheth outlined the intention to deepen the company's presence in existing markets before considering new regions for growth once disbursal targets are met.

When questioned about the evaluation of creditworthiness of loan applicants, Sheth highlighted the company's refined policies and processes over the years. Micro market-specific models have been developed to assess creditworthiness in small towns, considering collateral value and understanding the cash-flow cycle, especially for small business owners. On the credit underwriting front, a multi-layered vertical credit approval system is in place, incorporating effective delegation and the maker-checker concept.

Manish Sheth, the Managing Director and CEO of JM Financial Home Loans, expressed the company's aspiration to increase its assets under management (AUM) to Rs 50 billion by the financial year 2025-2026. He mentioned that the company, which currently has a capital base of Rs 4.5 billion and a leverage of three times, is also keen on expanding its presence in Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu. During the interview, Sheth provided insights into the growth strategy and financial details of the company. When asked about the growth plans, he responded that the retail mortgage business's AUM was around Rs 25 billion at the end of December 2023, showing a 65% year-on-year growth from the same quarter in 2022. The goal is to achieve an AUM of Rs 50 billion by FY26. Sheth explained the borrowing strategy, mentioning that the borrowing profile involves bank term loans, long-tenor refinancing from the National Housing Bank, and debt instruments such as non-convertible debentures (NCDs). He emphasized the preference for long-tenor borrowing due to the long-term nature of home loans. Regarding the expansion plan, Sheth outlined the intention to deepen the company's presence in existing markets before considering new regions for growth once disbursal targets are met. When questioned about the evaluation of creditworthiness of loan applicants, Sheth highlighted the company's refined policies and processes over the years. Micro market-specific models have been developed to assess creditworthiness in small towns, considering collateral value and understanding the cash-flow cycle, especially for small business owners. On the credit underwriting front, a multi-layered vertical credit approval system is in place, incorporating effective delegation and the maker-checker concept.

Next Story
Infrastructure Urban

Afcons shares gain momentum with Bhopal Metro Line 2 project

Afcons Infrastructure made a quiet debut on the stock market on Monday but quickly gained momentum after emerging as the lowest bidder for the Bhopal metro project line 2 package.The Bhopal Metro Phase 1 project’s 12.915 km Blue Line (Line-2) will link Bhadbhada Chauraha and Ratnagiri Tiraha, spanning 13 elevated stations. This package, issued by the Madhya Pradesh Metro Rail Corporation (MPMRCL), involves constructing all 13 stations of the Blue Line’s viaduct. The depot will also be shared with the Orange Line (Karond Circle to AIIMS) for maintenance and stabling purposes.Afcons’ exten..

Next Story
Infrastructure Transport

Locals urge CM to opt for road bypass over flyover at Dandeavaddo

Chinchinim villagers respectfully requested Pramod Sawant, Chief Minister, to instruct the Public Works Department (PWD) and the National Highway authorities to construct a road bypass instead of a flyover on the Dandeavaddo stretch of NH66. The villagers, led by Sarpanch Frank Viegas and Velim MLA Cruz Silva, also raised the long-standing issue of building the Chinchinim Panchayat Ghar and a multi-purpose project on panchayat land that was acquired more than 15 years ago. The delegation met the Chief Minister at the St. Sebastian Chapel junction in Chinchinim as he was returning home from a..

Next Story
Infrastructure Transport

MLA Yashpal Suvarna Announces Malpe-Udupi Highway Construction from Nov 6

MLA Yashpal Suvarna instructed officials to commence work on the Malpe-Udupi Highway on Wednesday. A meeting took place, attended by MP Kota Shrinivas Poojary, Udupi MLA Yashpal Suvarna, and Kaup MLA Suresh Shetty Gurme, to discuss the National Highway 169A project, which spans from Malpe to Udupi, covering areas like Hiriyadka, Parkala, and Perdur. The project had experienced delays due to incomplete land acquisition, but compensation notices have now been issued to the landowners. Of the 214 land acquisition files, 19 pertain to government land, while 195 involve private owners. Notices ha..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000