– Opens up another source of long term funding for SMFG Grihashakti, thereby helping diversification of sources of funds and support asset liability management
Bengaluru, 23 January, 2024: SMFG Grihashakti, one of the leading players in the affordable housing finance space in India has successfully secured long-tenor funds amounting to INR 300 Crore from National Housing Bank (NHB). This maiden transaction signifies an important milestone for SMFG Grihashakti and opens up an additional avenue for long-term, low-cost funding. This fund raise will play a pivotal role in expanding SMFG Grihashakti’s base and facilitating quality home financing solutions to the underserved population of the country.
Mr. Deepak Patkar, MD & CEO, SMFG Grihashakti, said, “It is our endeavour to bring affordable housing finance solutions to the underserved population and to fulfil homeownership dreams across the country. This maiden fund raise of INR 300 cr is a strategic step towards achieving this objective and demonstrates NHB’s confidence in our business model and financial stability.”
As on Dec 31, 2023, SMFG Grihashakti’s AUM stands at INR 8028 cr, showing a 37% CAGR growth over last two years, coupled with a significant improvement in asset quality. The company has a well-diversified borrowing profile comprising of bank loans, capital market instruments such as bonds, sub-ordinated debt along with securitization and direct assignments.
SMFG Grihashakti provides a diverse range of financial products to its customers across the country, including loans for home improvements, home constructions, home extensions, loans against properties, and loans for purchasing commercial properties. Additionally, SMFG Grihashakti also offers project construction financing solutions to mid-tier developers by leveraging the company’s extensive industry experience, strong parental relationships, nationwide distribution network, and a robust risk management framework.