SMFG Grihashakti to add more branches in Telangana, eyes affordable housing segment

Hyderabad: SMFG Grihashakti, which offers loans to salaried and self-employed individuals and mid-tier developers, said it will add three branches this financial year and another three to four branches in the next fiscal in Telangana.

“Telangana is an important state in SMFG Grihashakti’s growth story and we are committed to provide housing loan products to the underserved across the state,” said Deepak Patkar, managing director and chief executive officer, SMFG Grihashakti.

The company provides loans for home improvements, home constructions, home extensions, loans against properties, and loans to purchase commercial properties. The average size of the loans is Rs 15-20 lakh. Large loans are upto Rs 50 lakh.

“We are hopeful that the affordable housing segment will continue to grow at about 20 percent. Properties are priced below Rs 30 lakh in Tier II and III location and peripheral areas. Affordable housing segment has shown resilience after Covid and the net non-performing assets in the industry have come down sharply. We are less than two percent NPAs at this point in time and it is likely to improve further. Our collection efficiencies have been robust,” he said.

For it, Telangana is a key state in terms of assets under management (AUM) after Maharashtra, Rajasthan, NCR and Gujarat. It accounts for 9% to the overall AUM of the company at Rs 639 cr in the first of this fiscal. Telangana also recorded a 100% in disbursals this fiscal over last year. Currently, it has 120 employees and seven branches in Telangana.