DHFL's arm Aadhar Housing aims break even in 2013-14

Dewan Housing Finance Corporation Ltd (DHFL) promoted Aadhar Housing Finance today said it aims to attain break even by end of 2013-14 fiscal.

"Any typical housing finance company achieves break even in three years. We also hope the same by end 2013-14," Aadhar CEO Harshil Mehta said here today.

He was here to open first branch of the company at Howrah in West Bengal.

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Mehta said though Aadhar was targeting solely on low income group segment with small-ticket loan upto Rs 12 lakh, there was no plan to acquire the small loans of DHFL.

Aadhar was targeting a growth in lending by 20-25 per cent. However, Mehta said if the company expands its reach in southern region, then growth rate will be much higher.

Aadhar currently has presence in seven states with 17 branches. The company will increase number of branches to 22 shortly.

The total disbursal in the 18 months of operation of the company is Rs 220 crore.

Along with retail, the company may also finance projects but exposure will be between 10-20 per cent of the project cost.

The paid up capital of the company is Rs 100 crore and International Finance Corporation has picked up 20 per cent stake at Rs 20 crore.