Confident of sustaining 30% growth: Can Fin Homes

Can Fin Homes is targeting to sustain the 30 percent growth going forward, says C Ilango, MD of the company. Speaking to CNBC-TV18, Ilango says the company's net interest income (NII) will also grow in the same pattern on the back of growth in housing loans in business class.He sees a positive increase in loan book from October onwards and aims to expand it to Rs 10,800 crore by March next year.Below is the transcript of C Ilango’s interview with Ekta Batra and Sonia Shenoy on CNBC-TV18.Ekta: The company has been reporting strong net interest income (NII) and profit growth in the past few quarters. Q2, as well, your NII was up over 70 percent, your profit as up over 90 percent. What is the trajectory of growth we can expect in the second half? Will this sustain?A: We are confident of sustaining the same performance during the second half, because we continue to borrow from the bond market, that is commercial papers (CP) and Non-convertible debentures (NCD), for the entire incremental borrowings. So, we are confident that the cost of borrowings will come down further even though we have reduced the rate of interest for all our housing loans by 30 basis points in October, 2015 onwards. The distribution of housing loans and across the business class as well as the non-housing loans through loans against property (LAP) market and all these things. We are confident that we will be increasing our NII in the same pattern.Sonia: How is credit growth panning out now? Loan growth was up 32 percent in the quarter gone by, what is quarter three looking like and what are the trends within specific segments and geographies?A: Now, we feel we have positive surge during the third quarter. From October onwards, we are feeling that there is a good push in the market. We are receiving a lot of inquiries and these inquiries are getting converted into the proposals, then the reduction of the rate of interest from 10.2 to 9.95 and 8.85 percent loans and all these things, they are also contributing a lot in improving our business. We are getting more business and the balance transfers from the banks also is reduced because of low interest rate in our company itself. That growth of 30 percent, we will be maintaining. For March, 2016, our target is Rs 11,000 crore, but we are confident that we may be reaching around Rs 10,800 crore.