MESSAGE FROM THE MANAGEMENT
A New Chapter
Of Purposeful Progress
I am pleased to present Aadhar Housing Finance Ltd.’s Annual Report for the fiscal year that ended on 31st March 2024. Reflecting on an eventful year, our journey has been marked by significant milestones, including our heartening Initial Public Offering. This pivotal event celebrates our past achievements and opens the door to new possibilities.
I am deeply thankful for our dedicated employees, whose commitment and hard work are the cornerstone of our success. Their relentless drive is the foundation of our achievements, and I am confident in their ongoing passion and commitment.
Enabling Economic Growth Through Strategic Government Initiatives
Strategic fiscal measures and rapid urbanisation are reshaping India’s economic landscape, driving significant growth across various sectors. Initiatives such as the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) and the Pradhan Mantri Awas Yojana (Gramin) (PMAY-G) are crucial in enhancing rural incomes and employment, thereby bolstering demand. With a projected 13.2% increase in funding for these initiatives, there is a renewed commitment to revitalising rural economic resilience.
With the urban population projected to increase, the demand for urban housing is set to rise, supported by an improving per capita GDP, which experienced a 6.8% rise in fiscal 2024. This growth underscores the government’s effort to position India as an upper-middle-income economy. The Union government’s Pradhan Mantri Awas Yojana (Urban) has been and will be a key factor to boost demand in urban locations.
The housing finance sector, especially in the low-income segment, is set to expand significantly. Anticipated to grow at a compound annual growth rate (CAGR) of 13-15% from fiscal 2023 to 2026, the market is demonstrating resilience. This growth is supported by the increasing robustness of the rural economy and a shift towards digital lending platforms, which enhance transparency and affordability in the housing sector. These elements collectively foster a dynamic environment conducive to the continued expansion of low income housing finance, aligning seamlessly with our strategic objectives at Aadhar Housing.
FY 2024 for Aadhar Housing Finance Limited
This fiscal year, Aadhar Housing Finance Ltd. has shown strong financial and operational growth, affirming its leadership in the low-income housing finance sector. Our total income surged by 27% to ₹25,235.9 million, primarily driven by a 28% increase in interest income from loans, which amounted to ₹21,480.7 million. The Company’s return on equity(RoE) stood at an impressive 18.4%, with the net worth exceeding ₹44 billion.
Our Assets Under Management (AUM) has reached a record high of ₹211 billion, thanks to our focused approach to the low-income segment and our dedication to providing secured retail loans. Disbursement trends have also shown a robust 20% growth in FY 2024, underscoring our ability to scale operations and effectively meet our customers’ financial needs. Our commitment to technological integration across business functions continues to enhance our operational efficiency and profitability, evidenced by approximately 33% profit after tax before exceptional items on YoY basis.
With solid foundations and a cycle-tested, professional management team, Aadhar Housing Finance Ltd. is well- prepared to continue its growth trajectory, uphold high governance standards, and deliver exceptional value to our stakeholders.
Regulatory Environment and
Market Dynamics
The dynamic landscape of housing finance is continually shaped by regulatory changes and market conditions, which are critical in guiding our strategic direction. Recent updates in housing finance regulations and incentives, such as the PMAY Scheme’s credit-linked subsidies and unique financing windows have significantly facilitated the demand for housing. Further, the relaxation of ECB guidelines and revisions in GST rates for housing projects have stimulated sector growth, making financing more accessible.
Our strategic orientation is consistently refined to align with these regulatory shifts and capitalise on evolving market conditions. The transition of regulatory oversight from NHB to RBI has introduced more streamlined and robust frameworks for Housing Finance Companies (HFCs), enhancing our operational efficiency and risk management capabilities. These developments bolster the sector’s growth potential and reinforce our commitment to providing reliable and inclusive financial services, supporting our vision of empowering more homeowners across India.
Social Objectives at the Core of Our Business
The dynamic landscape of housing finance is continually shaped by regulatory changes and market conditions, which are critical in guiding our strategic direction. Recent updates in housing finance regulations and incentives, such as the PMAY Scheme’s credit-linked subsidies and unique financing windows have significantly facilitated the demand for housing. Further, the relaxation of ECB guidelines and revisions in GST rates for housing projects have stimulated sector growth, making financing
more accessible.
"In terms of AUM, we are the largest low-income housing finance Company, at ₹ 21,100 crore"
Our strategic orientation is consistently refined to align with these regulatory shifts and capitalise on evolving market conditions. The transition of regulatory oversight from NHB to RBI has introduced more streamlined and robust frameworks for Housing Finance Companies (HFCs), enhancing our operational efficiency and risk management capabilities. These developments bolster the sector’s growth potential and reinforce our commitment to providing reliable and inclusive financial services, supporting our vision of empowering more homeowners across India.
Strategic Operations and
Technology Integration
Aadhar Housing Finance Ltd. is strategically positioned to leverage favourable economic conditions and regulatory environments, enhancing its standing in the Indian housing finance market. Our focus on creating demand-supply dynamics is evidenced through our comprehensive credit assessment strategies, ensuring robust portfolio quality and extensive presence across India.Our meticulous underwriting process is at the heart of our strategy, which is finely tuned to cater to salaried and other customer segments through centralised and decentralised processing. This approach ensures rigorous credit evaluation by leveraging in-house technical and legal due diligence, enhancing operational efficiency and customer satisfaction.
"We are covering about 11,300+ Pin Codes out of the 17500+ Pin Codes in the states where we operate with distribution spread across the length and breadth of the country"
By maintaining a balanced focus on these strategic pillars— economic insight, regulatory adaptability, comprehensive credit assessment, strategic distribution, and technological advancement—Aadhar Housing Finance Ltd. strengthens its market position, driving sustainable growth and value creation for all stakeholders.
Navigating the Future with
Vision and Commitment
Building on our legacy achievements and strategic initiatives, Aadhar Housing Finance Ltd. is excellently positioned to capitalise on emerging opportunities within the expanding economy. We are committed to enhancing our operational efficiency and strengthening our market presence. Through extending our operations into new regions, championing Green Housing Initiatives, and broadening our co-lending network, we are set to enhance our lending capacity, diversify our customer base, and unlock fresh opportunities for growth.
We anticipate that FY 2024-25 will present its challenges and opportunities. The economy, geopolitical unrest, inflation, regulatory changes, and climate change are all factors that will continue to pose challenges not just to the broader market but directly to Aadhar Housing Finance as well. We have successfully navigated these challenges and I remain optimistic about our ability to continue doing so. Our perseverance, underpinned by a commitment to purpose and integrity, will ensure we remain on a path to success. I am profoundly grateful to our shareholders and customers for their continued trust in us. My gratitude extends to our employees and their families, whose steadfast support has been crucial during challenging times. On behalf of the Board of Directors and myself, it is a privilege to lead this journey, and we look forward to forging ahead with confidence and resilience.
