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DHFL bullish on K'taka market

Last Updated 01 August 2016, 19:46 IST
Mumbai-headquartered mortgage lender Dewan Housing Finance (DHFL) is bullish on the Karnataka market on account of requisite traction coming in, especially on the outskirts of smaller cities.

“Karnataka continues to be one of those states that provide growth momentum as well as supply of affordable housing. On the national level, the company is growing anywhere in the range of 18-20%. Our loan book for Karnataka would be in the range of Rs 9,000 to Rs 12,000 crore. We have been growing at a pace of 22-26% in the last three years, which is higher than the national level,” DHFL CEO Harshil Mehta told DH.

Mehta explained, “We are quite bullish on the Karnataka market, as it is giving us the requisite traction. Apart from Bengaluru, we are seeing good traction from cities like Mysuru, Mangaluru and Hubballi.

DHFL’s assets under management (AUM) grew by 20.02% to Rs 72,012.1 crore during the quarter ended June 30, 2016, against Rs 60,001.6 crore as on June 30, 2015. Loan book outstanding grew 18.32% to Rs 63,646.6 crore against Rs 53,795.7 crore in the corresponding quarter of the previous year. Gross NPAs stood at 0.98% amounting to Rs 623.8 crore.

DHFL was founded in 1984 by late Rajesh Kumar Wadhawan. However, in Karnataka, it embarked its journey in 1990. Today, in Karnataka, it has 41 branches catering to 65 locations across the state, generating 1,200 jobs. It has approved 200 projects in Bengaluru and 600 across Karnataka and provided loans to 52,000 families.

Mehta said, “In spite of an increase in real estate prices, we have been able to maintain the average loan ticket size in the range of Rs 12-14 lakh for housing loans, as our focus is on the LMI (low and medium income) group. We offer interest rates in the range of 9.55% to 9.75%.”

On expansion plans, Mehta said, “Our plan is to leverage the existing network. We are present in district headquarters, and we wish to expand to taluks and villages.”
 

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(Published 01 August 2016, 19:46 IST)

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