Repco Home Finance Limited has secured provisional ratings from ICRA Limited for its securitisation notes worth ₹98.26 crores. The housing finance company announced these rating assignments to the stock exchanges, fulfilling its disclosure requirements under Regulation 30.

Rating Details and Structure

ICRA Limited has assigned provisional ratings to two distinct series of securitisation notes under the Pratham122025 trust structure. The rating action covers instruments with varying risk profiles and corresponding rating grades.

The Series A1 SNs, representing the larger portion at ₹93.25 crores, received the higher provisional ICRA [AAA] (SO) rating, indicating superior credit quality. The Equity Tranche SNs, valued at ₹5.01 crores, were assigned a provisional ICRA [AA-] (SO) rating, reflecting a slightly lower but still strong credit assessment.

Securitisation Framework

The securitisation notes operate under the Pratham122025 trust name, representing a structured finance arrangement. This framework allows Repco Home Finance to convert its loan portfolio into tradeable securities, providing liquidity and risk distribution benefits. The provisional nature of these ratings indicates they are subject to final documentation and structural confirmations.

Regulatory Compliance

The disclosure demonstrates the company's commitment to keeping investors informed about significant financial developments.

Strategic Implications

The successful rating assignment may enable Repco Home Finance to proceed with its securitisation program, potentially improving its funding diversification and capital efficiency. The strong ratings, particularly the provisional [AAA] rating for the majority tranche, reflect the underlying asset quality and structural protections built into the securitisation arrangement.

Repco Home Finance Limited (RHFL) has reported its highest-ever quarterly disbursements of Rs. 1,069.00 crores in Q2, marking a significant milestone in the company's 25-year history. The company, celebrating its silver jubilee, has shown robust growth and outlined ambitious targets for the future.

Key Highlights

• Record disbursements of Rs. 1,069.00 crores in Q2, up from Rs. 867.00 crores in the same quarter last year
• Loan book grew by 8% to Rs. 15,033.00 crores
• Net profit reported at Rs. 107.00 crores
• Return on Assets (ROA) at 2.9% and Return on Equity (ROE) at 13.5%
• Targeting Rs. 16,200.00 crores Assets Under Management (AUM) by year-end

Financial Performance

RHFL's performance in Q2 demonstrates strong growth momentum. The company's loan book expanded to Rs. 15,033.00 crores, reflecting an 8% increase year-over-year. The net profit for the quarter stood at Rs. 107.00 crores, with ROA at 2.9% and ROE at 13.5%.

Disbursement and Sanctions

The company's disbursements saw a significant jump, reaching Rs. 1,069.00 crores in Q2, compared to Rs. 867.00 crores in the same quarter last year. Sanctions also increased to Rs. 1,206.00 crores, up from Rs. 926.00 crores in the corresponding period.

Asset Quality

RHFL reported Gross Non-Performing Assets (GNPA) of Rs. 475.00 crores as of September, representing 3.16% of the loan book. The company aims to reduce this to Rs. 450.00 crores in Q3. The Net NPA stood at Rs. 225.00 crores, or 1.50% of the loan book.

Business Outlook

The management expressed confidence in achieving their target of Rs. 16,200.00 crores AUM by the end of the year. They plan to open 10-15 new branches this financial year, focusing on expansion in western India, Karnataka, and Tamil Nadu.

Funding and Cost of Funds

RHFL is actively working on reducing its cost of funds. About Rs. 6,000.00 crores of bank borrowings are scheduled for re-pricing over the next three months, which is expected to lead to a further reduction in the overall cost of funds by 10-15 basis points.

Management Commentary

T. Karunakaran, Managing Director & CEO, stated, "We are progressing on our business parameters and are positive about meeting our guideline numbers. The structural changes processed across the organization are yielding results."

M. Raja, Chief Business Officer, added, "We have aggressive growth plans on both disbursement and AUM. We are also looking at going ahead with some book purchases, which is in the early stages."

Conclusion

Repco Home Finance's record-breaking performance in Q2 showcases the company's strong growth trajectory. With strategic expansion plans, focus on asset quality improvement, and efforts to optimize funding costs, RHFL appears well-positioned to achieve its ambitious targets for the year.