Repco Home Finance Optimistic On Growth Despite Higher Cost Of Funds
Repco Home Finance Ltd. expects to grow between 15 and 18 percent in calendar year 2019 even as the cost of funds has jumped by 50 basis points, according to its Managing Director Yashpal Gupta. The company grew 12 percent in 2018.
The housing finance firm has managed to pass on the rise in cost of funds by increasing interest rates, Gupta told BloombergQuint, adding the company is focussing on small-ticket loans and will continue to do so for a while. “We have been conservative in the sense that we are not doing builder finance at all and not doing large-ticket loans.”
India’s housing finance sector is facing a liquidity crunch in the aftermath of the Dewan Housing Finance Ltd. crisis. In January, an investigative news organisation Cobrapost had alleged that the company had siphoned off funds by extending loans to shell companies owned by its promoters.
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