Star Housing Finance reports strong FY22 results
Resuming business activity post second wave, Star HFL registered strong growth in disbursements in the second half of the financial year. Loan book scaled up backed by quality
Board of Directors of Star Housing Finance Limited (Star HFL) has announced FY 2021-22 audited financial results for the year ending on March 31, 2022. Financial highlights of the same are as follows:
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Particulars
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31-Mar-22
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Disbursements (Rs Lakhs)
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3658
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Loan Book Outstanding (Rs Lakhs)*
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10409
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Net Interest Income (Rs Lakhs)
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1187
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Total Net Income (Rs Lakhs)
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1319
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PAT (Rs Lakhs)
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238
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GNPA (%)
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2.99
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NNPA (%)
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2.41
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RoE (%)
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4.05
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RoA (%)
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1.71
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Book Value Per Share (Rs)
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38.65
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Earnings Per Share (Rs)
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1.49
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* Net loan book y-o-y growth has been rationalized as the legacy book gets run-down including wholesale loans
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To quote Ashish Jain, MD of Star HFL from a filing with the exchange, “We have registered reasonable growth in business during transformation. Our business numbers have grown while our NPA levels have remained stable. This year’s performance and way forward reflects our resolve to build products and services akin to the rural market which includes our recent offering of home loan products under the name ‘Star Gram Griha Loans’. We have continued to invest in our branch network, technology and manpower. We have started our business activities in new centers at Nashik and Delhi NCR. Our co-lending engagement shall augment our AUM growth”
Operational highlights are as follows:
Rechristened from Akme Star to Star HFL: As a part of transformation to a professionally run institution with strong corporate governance reflecting an independent corporate entity, the company rechristened its name to Star Housing Finance Limited. Star HFL received new CoR (Certificate of Registration) from the RBI.
Lending is now ‘Retail’: Dedicated focus on retail lending with maximum ticket size of Rs 25 lakhs across geographies of operations. This has resulted in lowering overall project lending exposure in absolute and percentage terms on the overall book.
In-house business model: Erstwhile franchise-based business model is now replaced with in house sourcing, processing, underwriting and receivable management of retail loans through Star HFL’s branch network. Core lending suite deployed aided by mobility applications resulting in optimal TAT for processing loan applications throughout Star HFL’s operational geographies.
Traction in business operations: Resuming business activity post second wave, Star HFL registered strong growth in disbursements in the second half of the financial year. Loan book scaled up backed by quality.
Strengthening of debt profile: Star HFL has developed strong relationships with public sector banks (SBI, BoB, UBI, and IOB) and has received credit lines from the NHB. Star HFL has strong funding pipeline from other public sector banks and Financial Institutions.
On-boarding of new rating partners: Star HFL has now engaged with CARE and India Ratings as its rating partners for long term credit facilities.
Experienced professionals now part of senior management: Anoop Saxena, a professional CA with more than 15 years of experience in retail low ticket housing finance space has joined Star HFL as head of underwriting and operations. Also, Bobby Singh Chandel, a BFSI professional with more than two decades of experience has joined Star HFL as head of business and receivable management.
Co-Lending partnership to augment AUM growth: Star HFL has entered into co-lending tie-ups with Capital India Home Loans and Singularity Credit Pvt Ltd. The company is in discussion with select banks and financial institutions for co-lending engagement.
On Wednesday, during early market hours, shares of Star HFL were trading at Rs 100 per share up by ~1.11 per cent on BSE.
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