look news india
Star Housing Finance Limited: Star Housing Finance Limited, a small town and rural focused home finance company and BSE listed, has maintained its growth momentum in the retail home finance segment and reported strong business and financial performance for the quarter ended June 30, 2024.
AUM grew 73.55 per cent year-on-year to Rs. 471.41 crore. The company has disbursed Rs. 61.23 crore in the quarter. Driving the revenue growth, interest income grew 61.43 per cent year-on-year with strong progress in disbursements. Net interest margin (NIM) stood at 7.04 per cent. Asset quality remains unchanged. As on June 30, 2024, PAR (Zero Days Past Due) stood at 3.38 per cent, of which GNPA stood at 1.57 per cent and NNPA at 1.12 per cent.
Commenting on the company's performance during the quarter, Kalpesh Dave, CEO, Star HFL said that Star HFL is moving ahead by focusing on asset quality. We now have Rs. 500 crore AUM milestone and on track to reach Rs. 1000 crore AUM in the next few quarters. The branch network is now diversified with multi-spaces at 34 locations with a staff strength of over 280 employees and aim to expand to over 50 locations across existing and new geographies.
While in terms of strong profitability, the profit before tax has increased by 87.98 percent year-on-year. In addition, Star HFL has strong tie-ups with banks and financial institutions to grow the loan book. Current loan to 6 banks and 11 financial institutions is Rs. 335.35 crore. Current liabilities are strong and planned as per the business plan for the financial year. Strong capital level has led to a net worth of Rs. 137.7 crore as on June 30, 2024.
The leverage level is 2.43 times. Adhering to the philosophy of employee ownership, the board of Star HFL has approved the ESOP II plan for eligible employees. This second plan has been implemented by the company keeping in view the increasing number of employees and provision of eligible employees for the growth of the company. On dividend payout, Star HFL has increased the dividend payout by 50 per cent from 5 paise per share to 7.5 paise per share, which is now subject to shareholders' approval in the upcoming AGM.