Aadhar Housing Finance Tracks 18% H2 Disbursement Growth, Aims for 20-22% AUM Rise

Aadhar Housing Finance is on track to meet its second-half disbursement guidance and anticipates robust asset growth over the coming years, according to Rishi Anand, Managing Director and CEO of Aadhar Housing Finance.

Speaking on third-quarter trends, Anand confirmed that disbursements have picked up after a slower first half. “Yes, we are on track,” he said, adding that the company continues to guide for 20–22% growth in assets under management (AUM) for the current financial year.

While the company did not disclose monthly figures for October and November, Anand noted that incremental disbursements in the third quarter are running above 20%.

On funding costs, Anand mentioned that the impact of recent repo rate cuts is gradually flowing through. About 20% of Aadhar Housing’s ₹18,000 crore borrowings are linked to the repo rate, with the rest tied to MCLR. “By the end of Q3, the pass-on should happen to the consumer,” he said. The company expects to close the year with a cost of funds of about 7.75%, compared with around 7.8% currently.

Anand also stated that spreads have remained stable so far. “H1 exit has been at 5.9% spread,” he said, adding that he does not foresee any meaningful contraction for the rest of the year.

Despite rising foreign interest in Indian non-banking financial companies (NBFCs), Anand said Aadhar Housing does not plan to raise capital in the near term, believing it is adequately capitalised for the next two-and-a-half to three years. “We are capitalised to the extent that we don’t need any capital infusion,” he said, noting that the company’s growth plans are already funded.

Aadhar Housing expects to maintain a 20–22% growth run rate over the next three years, which could result in AUM doubling over the next three-and-a-half years. Anand said capital requirements would arise only when leverage approaches regulatory thresholds.

Anand highlighted that housing demand continues to hold up, supported by income tax benefits, PMAY 2.0, and the ₹10,000-crore SWAMIH 2.0 fund. Supply additions across states such as Uttar Pradesh, Uttarakhand, Karnataka, and Andhra Pradesh are translating into demand from end users.

On asset quality, Anand said gross NPAs are expected to remain in the 1.10–1.15% range for the year. He mentioned that the company has not seen any new pockets of stress across regions, including areas that had previously seen pressure.

Addressing competition from public sector banks, Anand said Aadhar Housing’s focus on cash-flow-based lending in the low-income segment differentiates it from larger banks. “There is some overlap of 3–4%, but that’s about it,” he said, adding that PSU banks often meet priority sector targets through direct assignments rather than competing directly.

Aadhar Housing Finance currently has a market capitalisation of ₹21,010.92 crore, and the stock has gained over 14% in the past year.