January 23, 2024: SMFG Grihashakti, one of the leading players in the affordable housing finance space in India, has successfully secured long-tenor funds amounting to Rs 300 crore from the 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 will play a pivotal role in expanding SMFG Grihashakti’s base and facilitating quality home financing solutions to the underserved population of the country.
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 fundraising of Rs 300 crore is a strategic step towards achieving this objective and demonstrates NHB’s confidence in our business model and financial stability.”
As of December 31, 2023, SMFG Grihashakti’s assets under management (AUM) stands at Rs 8028 crore, showing a 37% CAGR growth over the last two years, coupled with a significant improvement in asset quality. The company has a well-diversified borrowing profile comprising bank loans, capital market instruments such as bonds, and subordinated debt along with securitisation 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, a nationwide distribution network, and a robust risk management framework.
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