Resuming business operations after the second wave, Star HFL recorded strong growth in disbursements in the second half of the fiscal year. A strong loan portfolio backed by quality
The Board of Star Housing Finance Limited (Star HFL) has announced the audited financial results for the financial year 2021-22 for the year ending 31 March 2022. The financial highlights are as follows:
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Details
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31-mar-22
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Disbursements (Rs Lakhs)
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3658
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Outstanding Loan Book (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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GNP (%)
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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 annual loan portfolio growth has been streamlined as the legacy portfolio shrinks, including wholesale loans
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To quote Ashish Jain, MD of Star HFL from an exchange filing, “We have seen reasonable business growth during the transformation. Our revenues increased while our NPA levels remained stable. This year’s performance and path forward reflects our determination to create similar products and services to the rural market, including our recent home loan product offering under the name “Star Gram Griha Loans”. We continued to invest in our branch network, technology and workforce. We started our business activities in new centers in Nashik and Delhi NCR. Our co-loan engagement will increase our AUM growth”
The operational highlights are as follows:
Rebranded from Akme Star to Star HFL: As part of its transformation into a professionally managed institution with strong corporate governance reflecting an independent legal entity, the company has rebranded its name to Star Housing Finance Limited. Star HFL has received a new CoR (Certificate of Registration) from the RBI.
The loan is now “Retail”: Dedicated focus on retail lending with a maximum note size of Rs 25 lakhs across all geographies of operations. This resulted in a reduction in overall project loan exposure in absolute terms and as a percentage of the overall portfolio.
Internal business model: The old franchise-based business model is now being replaced with in-house retail loan sourcing, processing, underwriting and receivables management through Star HFL’s branch network. Core lending suite deployed using mobility applications, resulting in optimal TAT for processing loan applications across all Star HFL operating geographies.
Traction in business operations: Resuming business operations after the second wave, Star HFL recorded strong growth in disbursements in the second half of the fiscal year. Strong loan portfolio backed by quality.
Strengthening of the debt profile: Star HFL has developed strong relationships with public sector banks (SBI, BoB, UBI and IOB) and has received credit lines from NHB. Star HFL has a strong funding pipeline from other public sector banks and financial institutions.
Onboarding new rating partners: Star HFL has now engaged with CARE and India Ratings as rating partners for long-term credit facilities.
Experienced professionals are now part of senior management: Anoop Saxena, a CA professional with over 15 years of low cost housing finance experience, has joined Star HFL as Head of Underwriting and Operations. Additionally, Bobby Singh Chandel, a BFSI professional with over two decades of experience, has joined Star HFL as Head of Business and Receivables Management.
Co-lending partnership to increase the growth of assets under management: Star HFL has entered into co-loan agreements with Capital India Home Loans and Singularity Credit Pvt Ltd. The company is in discussions with certain banks and financial institutions for a co-loan commitment.
In the early hours of trading on Wednesday, shares of Star HFL were trading at 100 rupees per share, up about 1.11% on BSE.
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