Home First Finance Company India Limited (HFFC), a leading player in the affordable housing finance sector, has announced a significant move in its corporate governance structure. The company has issued a postal ballot notice seeking shareholder approval for the appointment of Mr. Sriram Hariharan as an Additional Non-Executive Independent Director.

Key Details of the Appointment

• The Board of Directors approved Mr. Hariharan's appointment on June 26, 2025, for a first term of five consecutive years.
• The appointment is subject to shareholder approval through a special resolution.
• The e-voting period for shareholders runs from August 6, 2025, to September 4, 2025.
• Results of the postal ballot will be declared by September 8, 2025.

About Sriram Hariharan

Mr. Hariharan brings a wealth of experience and expertise to HFFC:

• He holds engineering and management qualifications from NIT and IIM Bangalore.
• Previously served as President and CEO of ICICI Bank Canada from 2008 to 2019.
• Expertise in banking, risk management, corporate governance, and information technology.

Compensation Structure

If appointed, Mr. Hariharan will be eligible for:

• Sitting fees for attending board and committee meetings.
• Commission based on company performance, as previously approved by shareholders in November 2020.

Recent Financial Performance

HFFC has also reported its financial results for Q1 FY26:

Strategic Developments

• HFFC raised Rs. 1,250.00 crore through its first Qualified Institutional Placement (QIP), strengthening its capital base.
• The company's long-term credit rating was upgraded to AA (Stable) by ICRA, India Ratings, and CARE.
• HFFC continues to focus on technology-driven growth, launching "Pulse", an omnichannel Conversational AI platform.

Management Commentary

Manoj Viswanathan, MD & CEO of HFFC, commented on the company's performance: "Q1FY26 was marked by two important events in our history: our first QIP and credit rating upgrade. Both these events further enhance our ability to build a strong and large housing finance franchise."

The appointment of Mr. Sriram Hariharan, if approved, is expected to further strengthen HFFC's board and contribute to the company's strategic growth in the competitive housing finance market.

Home First Finance Company India Limited , a prominent player in the affordable housing finance sector, has reported a robust 28.6% year-on-year growth in Assets Under Management (AUM) for the quarter ended June 30. The company's AUM reached Rs. 13,479.00 crores, marking a 6% increase from the previous quarter.

Key Financial Highlights

• Disbursements stood at Rs. 1,243.00 crores, the second-highest in the company's history.
• Profit After Tax (PAT) increased by 35.5% year-on-year to Rs. 119.00 crores.
• Net Interest Margin (NIM) improved to 5.2% from 5.1% in the previous quarter.
• The company successfully raised Rs. 1,250.00 crores through its first Qualified Institutional Placement (QIP).

Credit Rating Upgrade and Capital Position

Home First Finance received credit rating upgrades to AA (Stable) from ICRA, India Ratings, and CARE. This upgrade, coupled with the successful QIP, has significantly strengthened the company's capital base. The Capital Adequacy Ratio stands at a robust 49.6%, with Tier I at 49.2%.

Asset Quality

The company experienced a seasonal uptick in asset quality metrics:

• 1+ Days Past Due (DPD) rose to 5.4% (up 90 bps quarter-on-quarter)
• 30+ DPD increased to 3.5% (up 50 bps quarter-on-quarter)
• Gross Stage 3 assets stood at 1.8% (up 10 bps quarter-on-quarter)

The management noted that the increase was more pronounced in the Surat and Coimbatore-Tirupur regions but expects normalization over the next two quarters.

Operational Highlights

• The company expanded its physical presence to 158 branches.
• Total employee strength increased to 1,709.
• Home First's origination market share in the Rs. 5-25 lakh ticket size segment improved from 1.5% in FY22 to 2.3% in FY25.

Technology Initiatives

Home First launched "Pulse", an omnichannel Conversational AI platform, enabling integrated customer interactions across various channels in seven Indian languages. The company also implemented internally developed enterprise-grade Document Management and Treasury Management Systems.

Management Commentary

Manoj Viswanathan, MD & CEO, stated, "Q1 was marked by two important events in our history: First, we raised Rs. 1,250.00 crore through our first QIP, which has significantly increased our net worth and further strengthened our capital base. Also, our long-term credit rating was upgraded to AA (Stable) by ICRA, India Ratings and CARE."

Nutan Gaba Patwari, CFO, commented on the cost of borrowings, "Our reported cost of borrowing is competitive at 8.4% (Ex- co-lending), enabling us to maintain healthy spreads. With the recent rate cuts and an improved long-term rating, we expect the cost of borrowing to improve in Q2."

Future Outlook

Home First Finance maintains its annual disbursement guidance of Rs. 5,600.00-5,800.00 crores and credit cost guidance of 30-40 basis points. The company remains confident in its ability to harness the multi-decade growth opportunity in the affordable housing finance sector, supported by its strong business model and the government's continued focus on housing initiatives.