Will maintain 25-30% growth in FY16: Repco Home Fin

Repco Home Finance expects 25-30 percent growth in its topline this fiscal, says V Raghu of Repco Home Finance. Speaking to CNBC-TV18, he says that the company’s gross non-performing asset (NPA) is at 2.2 percent, which is lower quarter-on-quarter. Repco is present in over 70 districts of Tamil Nadu, accounting for 50 percent of its presence in the southern region, he says.“Our strategy will be to have a deeper penetration in the existing markets and then we will look into new geographies later on,” he adds. Below is the transcript of V Raghu’s interview with Anuj Singhal and Ekta Batra on CNBC-TV18.Anuj: I was just looking at your numbers, decent growth in your net interest income (NII) and profit, in the 20s in terms of percentage growth but is this kind of growth sustainable and do you have any kind of targets? A: We believe that the growth which we have witnessed during Q1 is sustainable in the coming quarters also. Our belief is based on the ground realities that we have been facing in the markets where we are right now in. We believe that it is sustainable. Ekta: If you can just up rise is quickly of what happened about your gross non-performing loans (NPLs) and is it just seasonality in Q1 and do you expect it to settle in the coming quarter? A: Keeping with the past trend, Q1 has seen a rise in the NPA level. However, if you see the gross NPA level at the end of Q1 at 2.2 percent, was lower than the figure which we reported in Q1 of the previous year. That gives us confidence that we can still improve the gross NPA levels in the coming quarters and probably we will stride to reach a level which should be lower than the gross NPA level which we reported at the end of the previous year. Anuj: What about your loan growth, it was quite significant last quarter, 30 percent, disbursement sanctions also going up in high double digits, what kind of growth rates can we see? A: We believe that the growth momentum which we have witnessed in Q1 will be sustainable in the coming period also. I don’t think I will be in a position to give you a guidance but we strongly believe that we should be in a position to maintain our growth rate for the current financial year between 25 and 30 percent.Ekta: Since we are focusing on our Inside Chennai segment I just wanted to get a sense in terms of how your diversification or your geographical diversification has been from Chennai? Where do you have the biggest market share at this point in time and which are the geographies that you possibly see the highest and the lowest gross NPLs as well? A: Since we are a Chennai based company, about 50 percent of our presence is in the southern region. We are present in almost 70 locations across Tamil Nadu. We are present in almost every district in Tamil Nadu. Our strategy will be to have a deeper penetration in the existing markets and then we will look into new geographies later on. The strategy clearly is going to be that we will like to consolidate our position in the existing market.