Like everyyear, we try to bring a perspective on Housing in India, the key drivers, changes in landscape and how HomeFirst continues to thrive with a clear focus on Housing Finance. We have structured the narrative in the following manner for your better reading. We have also tried to depict the narrative through a flowchart that connects the building blocks of creating a strong affordable housing finance franchise. We hope to hear from you on your perspective on housing finance and continueourfocusforafewdecadestocome.
1 .India continues to gain global prominence driven by steady, consistent growth and structural resilience
2. Governments focus and measures to improve socio-economic landscape-a necessity
3. GDPgrowth and Government measures driving demand for housing finance
4. Under penetration and robust demand to ensure sustained growth of housing finance
5. Are all states the same?
5A. Building blocks of housing finance penetration across states
5B. HomeFirst Emerging States building strong foundation with growth potential
6. Technological and digital penetration bringing in new opportunities and challenges
7. Awelcomingand conducive regulatory frameworkand policysupporttowards sustainable growth
8. Conclusion
1. India continues to gain global prominence driven by steady, consistent growth and structural resilience
India, over last three decades, has been growing much faster among all major economies and has been increasing its prominence in the global context. Unlike some large peers, the India growth story has been very consistent and resilient as the economy has tide over multiple economic shocks and yet delivered consistent growth.
As per MOSPIs (Ministry of Statistics and Program Implementation, Government of India) second advance estimates, the GDP is expected to grow around 6.5% for FY25 (IMF estimate comparable for CY24), which is a globally leading rate. Indias growth is being driven by faster growth of Industry and Services sectors, expanding at 5.6% and 7.3%, respectively. This highlights governments strategic focus on growth of MSMEsand Ease of Doing Business along with key initiatives such as Make in India, Skill India, and Atmanirbhar Bharat which not only elevates economic output but also generates employment, enhances per capita income, and stimulates demand across industries.
( \ Exhibit: Indian Economy resilient over long-term despite multiple economic shock with multi-decade growth consistent around 6.5%
Resilience of Indian economy, over the past many decades, stems from its structural composition including industry and services sector as well as domestic consumption. These factors have helped Indian economy tide away large disruptions like Asia Financial Crisis in FY98 or Global Financial Crisis in FY08. The only time Indian economy witnessed negative growth since 1990s was during FY21 driven by impact of Covid-19. Since the Asian financial crisis, the Indian economys decadal average growth remained at 6.4%-6.6%, even after getting impacted from the Global financial crisis of FY09 and the covid impact in FY21.
The rapid and consistent growth in GDP has led to India gaining prominence in global economy. Over 2014 to 2021, India consistently gained ranking in terms of size and became the fifth largest (in 2021) economy globally (from ninth in 2014) in terms of GDP at current prices. As per IMF World Economic Outlook (Oct24), India is expected to become third largest by 2028. The consistent growth in GDP has led to significant growth in per-capita income - presenting significant opportunities, especially with strong foundational shift of its large population base dynamics and improving socioeconomic factors.
2. Governments focus and measures to improve socio-economic landscape - a necessity
The Indian government has been actively working to uplift the socio-economic status of the country through a multifaceted approach. As per Economic Survey 2025, total expenditure on social services has gone up from 24.4% in FY17 to 26.2% in FY25 (BE) - as a percentage of total expenses (Centre and State together). In absolute terms, it implies CAGR of 12% over the same period - from 10.4 lakh Crs annual expense in FY17 to 25.7 lakh Crs in FY25. Some key focus areas of government are:
A. Education and skill development reforms are being prioritized to equip the workforce with future-ready capabilities, fostering innovation and entrepreneurship.
B. Improving healthcare infrastructure.
C. Access to necessities like drinking water and sanitation has been another focus to improve standard of life.
D. Financial inclusion by way of providing credit / credit guarantee and banking facilities.
E. Urban development to focus on building new centres of growth.
F. Significant investments have been made in transportation networks, logistics, and smart city projects to drive urban and rural connectivity.
By focusing on these interconnected areas, the government aims to accelerate economic progress while ensuring a better standard of living for all citizens - bolstering demand across different sectors.
Let us deep dive into some of the key areas of focus in each of the above aspects:
2A. Education, Skilling & Employment Generation:
Government has been putting major thrust on education - primary, higher education as well as vocational upskilling. The National Education Policy 2020 ("NEP") aims to have engaged, productive, and contributing citizens for building an equitable and inclusive society. School infrastructure is being improved under the policy with a focus on improving Gross Enrolment Rates ("GER") for both primary and secondary education. The policy stipulates that foundational literacy and numeracy ("FLN") is critical for education and lifelong learning success. Towards this end, the Department of School Education & Literacy launched the National Mission, "National Initiative for Proficiency in Reading with Understanding and Numeracy (NIPUN Bharat)," in Jul21 to ensure that every child in the country necessarily attains FLN by the end of Grade 3, by FY27. It covers three years of FLN in preschool and Grades 1,2 and 3. Given schools lay the foundation of education and good school infrastructure is critical to improve enrolment rate, the government has been focussed on improving school infrastructure.
Exhibit: Improving School Infrastructure
| Parameters (in %) | FY23 | FY24 | FY25 |
| Girls Toilet | 97.5 | 97.0 | 97.2 |
| Boys Toilet | 96.2 | 95.6 | 95.7 |
| Hand Wash Facility | 93.6 | 94.1 | 94.7 |
| Library/Reading Room or Corner | 87.3 | 88.3 | 89.0 |
| Electricity | 89.3 | 91.7 | 91.8 |
| Annual Medical Check-up | 54.6 | 74.3 | 75.2 |
| Computer | 47.5 | 47.7 | 57.2 |
2A.1. Employment focussed initiatives:
Governments initiatives like "Make-in-India" and "Skill India" are targeted towards up-skilling and generating employment with an objective to make India "Aatmanirbhar" (self-reliant). These two factors form the foundation for improvement in skills, sustainably increasing jobs as well as increase in per capita incomes and strengthen consumption in the medium-to-long term. The Skill India initiative has been instrumental in creating and implementing comprehensive skill development training programs, bridging the gap between industry demands and skill requirements, and driving the countrys development. The internship programme launched in Oct24 aiming to provide 1.25 lakh internships in FY25 is a classic example of Governments focus on enhancing employability skills through practical experiences. Further since its inception in Jul15, PMKVY (Pradhan Mantri Kaushal Vikas Yojana) has emerged as a cornerstone initiative in Indias skill development landscape. As per the Ministry of Skill Development and Entrepreneurship, the scheme has successfully trained 1.42 Cr individuals, with 1.13 Cr of them having received certification by Sep24. The finance minister, during the Union Budget 2025 speech, announced that five centres of excellence will be set up for skilling the youth of the country. Allocations were raised for the key schemes - like New Employment Generation scheme (budget allocation increased from 10,000 Crs in FY25 to 20,000 Crs in FY26), New Internship Programme (budget allocation increased from 2,005 Crs in FY25 to 10,842 Crs in FY26), and ITI Upgradation scheme (budget allocation increased from 1,000 Crs in FY25 to 3,000 Crs in FY26) - to continue focus on promoting employment and skilling. These initiatives have had a profound impact on the MSME sector, enhancing the employability of the workforce. The backbone of Indias economy, MSMEs significantly contribute to the countrys growth, accounting for approximately 30% of the GDP, 46% of the Indias exports, and providing employment opportunities to approximately 25.2 Cr people (Source: Udyam portal). The growth of MSMEs is crucial in generating employment opportunities for the Indian population.
Growth in formal and semi-formal job observed backed by MSMEs growth (as evident from Udyam data). Key drivers include expansion in the Information Technology, Industrial & Materials, and Healthcare sectors, propelled by digital transformation and company growth initiatives. Tailwinds such as government incentives, like Make-in-India, Skill India, Internship programmes, are expected to further bolster job creation and attract substantial investments.
2B. Improving health care services, insurance penetration and life expectancy:
India has witnessed a notable increase in public spending on healthcare infrastructure, reflecting a growing commitment to bolstering the nations healthcare system. As per National Health Authority (NHA), Government health expenditure increased from 1.1% (i.e. 1.4 lakh Crs) in FY15 to 1.8% of GDP (i.e. 4.3 lakh Crs) in FY22. Over the same period, the total healthcare expenditure, has nearly doubled to 9 lakh Crs (3.8% of FY22 GDP). This upward trend indicates a prioritization of healthcare investment to address the evolving needs of the population.
2B.1. Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY):
Launched in Sep18, AB PM-JAY is the worlds largest publicly funded health assurance scheme, providing health coverage of 5 lakh per family per year for secondary and tertiary care hospitalization. As of Oct24, the scheme has expanded to include all senior citizens aged 70 and above, irrespective of their socio-economic status, benefiting an estimated 4.5 Cr families. As per National Health Authority, this increase has facilitated enhanced public healthcare services, contributing to a decline in Out-of-Pocket Expenditure (OOPE) of patients - from 48.8% in FY18 to 39.4% in FY22 as a percentage of the total health expenditure. This trend not only helps the lower income household by providing them access to better healthcare facilities but also aids in their disposable incomes. As per Household Consumption Expenditure Survey FY23, medical expenses form 6% of monthly per capita consumption expenditure of urban areas and 7% of rural areas.
Others schemes such as the Pradhan Mantri Jan Aushadhi Yojana (PMJAY), Aam Aadmi Bima Yojana (AABY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) etc. aimed to address from providing generic low-cost medicines, improved and low-cost insurance covers etc. eventually addressing to reduce the Out-ofpocket expenditure and improving affordability of Health care services for the lower and middle class population.
Improving healthcare facilities and insurance penetration has had a positive impact on life expectancy in the country. Between 1990 - 2024, life expectancy in India witnessed a sharp improvement - from 58.62 years in 1990 to 72.24 in 2024. During the same period, the gap against global average narrowed significantly and is expected to surpass the world average by 2042.
2C. Improving Sanitation and Water Infrastructure:
As part of enhancing public healthcare and standard of life, improving water and sanitation infrastructure has been a major area of thrust by the government. Various schemes like Jal Jeevan Mission ("JJM"), Swachh Bharat Mission ("SBM"), and Atal Bhujal Yojna have been launched to address these areas.
2C.1. Jal Jeevan Mission ("JJM"):
JJM was launched in Aug19 with an objective to provide access to tap water to rural households; the scheme has covered ~80% of rural households and has been extended till 2028 to cover balance 20% of rural household under the scheme.
2C.2. Swachh Bharat Mission ("SBM"):
SBM was launched in Oct14 to achieve universal sanitation coverage, eliminate open defecation, and promote cleanliness through behaviour change and infrastructure support.
2C.3. Atal Bhujal Yojna:
The scheme was launched in Dec19 to improve the management of groundwater resources in select water
stressed areas in identified states viz. Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh. The scheme is being taken up in 8,220 water stressed Gram Panchayats of selected seven states. 50% of funding for the scheme is being contributed by the World Bank.
2D. Financial Inclusion:
Indias financial inclusion has improved significantly between 2013 and 2021 driven by governments push. In Aug14, the government launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) to provide banking services to all households in the country. As of Mar25, ~55 Cr PMJDY accounts had been opened, of which 67% were in rural and semi-urban areas.
The government has been focussing on providing credit support to economically weaker section and lower income group through multiple credit/credit guarantee schemes like Pradhan Mantri MUDRA Yojna (PMMY; collateral free micro loans upto 10 lakh and overdraft facility upto 10,000), Credit Guarantee Fund for Micro Units (CGMFU; collateral free loans above 10 lakh and upto 20 lakh to Self Help Groups) etc. with the overall objective of financial inclusion.
2E. Urban development:
The Government of India has been focussed towards developing urban centres to support growing industrial and services sector in the country. The governments effort includes improving transport facilities (expanding intra-city transport facilities as well as expanding and upgrading inter-city), sanitation and waste management, core infrastructure etc. Various schemes like Smart Cities Mission, National Urban Livelihood Mission, PM SVANidhi, PMAY-U, AMRUT Mission have
been launched with focus on developing cities and towns as centres for growth.
2E.1. Smart City Projects:
Launched in Jun15 with an aim of developing urban areas as centres for growth and progress. Over the past decade, more than 8,000 projects have been undertaken in 100 smart cities. As of Jan25, around 90% of these projects have been completed with a total outlay of 1.5 lakh Crs.
2E.2. Atal Mission for Rejuvenation and Urban Transformation:
The Atal Mission for Rejuvenation and Urban Transformation (AMRUT), was launched in Jun15, to enhance urban infrastructure and governance. AMRUT 1.0 (2015-2020) focused on basic urban services like water supply, sewerage, and green spaces in 500 cities but lacked smart technology integration. AMRUT 2.0 (2021-2026) expanded the coverage to 675 cities, ensuring universal water supply, smart water management, and sustainability. Over the past decade, ~15,000 projects with a projected outlay of ~ 3 lakh Crs have been sanctioned with overall works for ~ 1 lakh Crs being physically completed. 189 lakh tap connections have been provided with tap coverage in these cities increasing from 44% in 2011 to 70% in 2024 - targeted to be increased to 88% in five years. Sewerage coverage over the same period has improved from 32% in 2011 to 62% in 2024 - driven by 149 lakh connections including Faecal Sludge and Septage Management (FSSM) facilities.
Exhibit: AMRUT - Achievements over last decade
| Sector | Physical Completion Value (?Crs) | Other Outcomes |
| Water Supply | 41,470 | 189 lakh tap connections |
| Sewerage & Septage | 32,119 | 4,429 MLD STP* capacity created |
| Storm Water Drainage | 2,797 | 1,412 Km drains; 3,672 waterlogging points eliminated |
| Non-Motorized Urban Transport | 954 | - |
| Green Spaces & Parks | 1,257 | 5,420 acres green space developed |
Source: MoHUA, Annual Report FY25, MLD: Million Liters per day; STP: Sewage treatment plant 2F. Focus on transportation and connectivity:
There have been continuous efforts to improve the connectivity in the country across all modes of transportation.
2F.1. Roads: Over past 12 years, the road network in India has been growing at a CAGR of ~9% to ~66 lakh kms, ranking 2nd in the World, next to USA. National Highways have witnessed a growth of ~12.7% CAGR (in terms of Kms) in the same period given the continued focus on connecting states through various corridor programmes.
2F.2. Indian Railways has expanded its running tracks from 78,607 kms in FY91 to over 1,09,000 kms in FY24, showing steady growth. Railway electrification, has surged dramatically from just 24.1% (in FY91) to a remarkable 93.4% by FY24. Major focus has been towards investment in high-speed rail, specialised intercity trains like Vande Bharat, modernisation of stations, and dedicated freight corridors to transform the rail connectivity nationwide.
2F.3. Indias port infrastructure has seen steady development over the past decade, with the total capacity at the 12 major ports rising from 872 million tonnes per annum ("MTPA") in FY15 to 1,630 MTPA in FY24, as per the Ministry of Ports, Shipping & Waterways. Major initiatives like the Sagarmala Programme have catalysed port modernization, new port development, and coastal community connectivity. Additionally, projects under the National Infrastructure Pipeline ("NIP") and the PM Gati Shakti plan are integrating port logistics with road, rail, and inland waterways, enhancing efficiency and boosting Indias global trade competitiveness.
3. GDP growth and Government measures driving demand for housing finance
3A. Demographic dividend with rising working population, especially towards self-employment:
While Indias population growth has started to flatten with decadal growth expected to be 9% for FY21-FY31 vs 17% for FY01-FY11, the base continues to be large with a total population of more than 140 Crs and working age
population (age 15 - 59) of more than 90 Crs. The governments focus on education, promotion of MSMEs together with faster growth of industry and services sectors of the economy is driving changes in the category-wise employment status in the country with proportion of self-employed increasing over the last few years.
3B. Rising "Middle Class" in Indian society:
The proportion of "Middle India" (defined as households with annual income of 2 lakhs to 10 lakhs) has been on the rise over the past decade and is expected to continue increasing with rising GDP and household incomes. Crucial factors facilitating the transition of low- income groups to middle-income groups have been (a) financial inclusion, (b) rising employment opportunities, and (c) rising disposable income.
Personal Income Tax easing to boost disposable income:
The Union Budget 2025 increased the tax exemption limit from 7 lakhs to 12 lakhs providing tax savings of up to ~ 80,000 annually for an individual earning 12
lakhs which is ~6.7% of the annual income. With the increasing level of savings in hand of households, there is a likely boost consumption as well improve affordability to own assets and is expected to be supportive to the overall housing ecosystem.
3C. Increasing urban population:
Urbanization is one of Indias most important economic growth drivers and arising out of faster growth in industry and services vis-a-vis agriculture; backed by several government initiatives. It is expected to further drive substantial investments in infrastructure development, which in turn is expected to create jobs and impact consumer behaviour / aspirations.
Indias urban population has been rising consistently over the decades. As per the 2018 revision of World
Urbanization Prospects, the urban population was estimated at 36% of Indias total population in 2023. According to the World Urbanization Prospects, the percentage of the population residing in urban areas in India is expected to increase to 40% by 2030. Moreover, an examination of the trend in cities with a population exceeding 10 lakhs over the past few decades reveals a significant increase, with the number nearly doubling from 36 in 2000 to 63 in 2020. This upward trajectory is expected to continue, with the number projected to reach 78 by 2035, thereby driving demand for urban housing.
3D. Reducing size of households:
The increasing trend of migration to urban areas is driving formation of multiple single families out of one large joint family. Each family lives in a separate house, while the ancestral house may be retained or partitioned to buy new houses. This is further being highlighted in urban areas driven by changing lifestyle of people, individualism, and changing social/cultural attitudes.
3E. Reducing age of borrowers:
The improving income curve along with availability of credit is driving consumer aspirations and demand for housing. Reducing age of home borrower highlights this fact. Further, it also aids in loan eligibility as it facilitates longer loan tenors leading to lower EMIs.
4. Under penetration and robust demand to ensure sustained growth of housing finance
Housing is a fundamental need of human existence. A house is not merely a place to live and build a life; it is also one of the most significant assets for a family. An investment in a house roots a family to a location, contributing significantly to the economic and social development of the local area. In India, with a vast and growing population and with the backdrop on ongoing urbanisation, nuclearization of families, increasing investments in education and women upliftment, rising consumer aspirations with growing middle-class and improvement in underlying socio-economic parameter, owning a decent home continues to be a lifelong aspiration for many. As per studies, two-third of Indians express a strong intention to purchase a home, with millennials (age 28-40) leading the charge.
However, despite the constant focus on the housing segment, housing in India remains far from adequate. The shortage of housing in India has been a perpetual problem. The shortage in urban housing is largely due to congestion and shortage in rural housing is due to nonserviceable and kutcha house (low quality house) followed by congested houses.
Affordable housing has been a long-standing challenge not only in India but worldwide. As per report by the World Economic Forum, globally 1.6 billion people lack adequate housing and this is estimated to grow to 3 billion by 2030. Factors such as rapid urbanisation,
decline in public housing, lack of state interventions etc. are some of the factors impacting the widening gap in affordable housing segment across the countries. As the most populous country experiencing the fastest pace of urbanisation, India is likely to witness significant demand for affordable housing in the coming years.
One of the key ownership methods for houses is through home loans (i.e. mortgages). Mortgages have become a popular means of facilitating the purchase of a house across all segments - even though the needs and product requirements vary significantly across the segments. India has a very low mortgage-to-GDP ratio compared to other countries, indicating an untapped potential for growth in the housing finance sector. Despite being one of the fastest-growing major economies, Indias housing finance market remains under penetrated, with a significant portion of the population lacking access to formal credit channels. The dynamics of housing finance are evolving with changes in socio-economic fabric like rising per capita income, increasing urban population, reducing size of households, reducing age of borrowers, increasing formalisation of economy with financial inclusion and digital records, increasing usage of technology in sourcing and underwriting and more. These changes are expected to boost mortgage-to-GDP ratio - paving foundation for sustained growth in housing finance.
4A. Large Total Addressable Market for Affordable Housing Finance
A significant (about two-third) investment in real-estate and ownership dwellings is met through finance from various lending institutions. In our "Annual Report 2024", we had estimated 10 years cumulative disbursement opportunity size at $ 355 bn (29 lakh Crs) basis the volume trends in 5-25 lakh ticket housing finance loans (annual demand of 20 lakh units) and average ticket size of 11,30,000 (with 5% annual growth). As per Dec24 report on "Affordable Housing in India" by CII - Knight Frank, the cumulative affordable housing shortage in India is projected to reach 312 lakhs by 2030, with the market size estimated at 67 lakh Crs. Based on an assumption of a 77% loan dependency and Loan-to- Value (LTV) ratios applied at various loan thresholds, the potential financing opportunity for banks and Housing Finance Companies (HFCs) in the affordable housing segment is estimated to be 45 lakh Crs by 2030 - with two-third (~29 lakh Crs) of this coming from LIG and EWS segment.
Exhibit: Assessment of financing opportunity for affordable housing consumer loans
| Housing Shortage | Average cost of dwelling | Market Size | Potential Market | Financing Opportunity | |
| Section | (Units in Lakhs) | ( Lakhs) | ( Lakhs Crs) | ( Lakhs Crs) | ( Lakhs Crs) |
| EWS | 150 | 12 | 17.4 | 13.4 | 11.8 |
| LIG | 109 | 23 | 25.2 | 19.4 | 17.2 |
| MIG | 53 | 46 | 24.6 | 18.9 | 15.6 |
| 312 | 67.1 | 51.6 | 44.6 |
Source: "Affordable Housing in India" by CII - Knight Frank, Dec24; 77% loan dependency; 90% & 80% LTVs
Due to the substantial variations in the underlying consumer profile, the housing sector experiences a distinct landscape for various segments. The income profile across segments varies materially not just in terms of the income level but also the predictability and sources of income. Given these differences, specialized providers - both on development and financing side - have emerged to cater to the unique needs in the different segments. The housing finance market is relatively well-served in the MIG+ segment by commercial banks and some larger and more matured housing finance companies while Affordable HFCs focus largely on LIG and EWS. To support the argument, we retrieve data from RBIs repository on ticket-size wise housing finance by banks. It is observed that banks are focused on high ticket size loans which is evident from the rising share of higher than 25 Lakhs ticket size loans in their portfolio - increased from 39.4% as of Mar14 to 71.8% as of Dec24. In Mar25, the regulator has revised PSL definition for most asset categories expanding the ticket sizes to adjust for inflation. The PSL definition for housing has been increased from 35 Lakhs earlier to 50 Lakhs. This shall help banks to continue their focus on the larger ticket loans within MIG+ segment.
5A. Building blocks of housing finance penetration across states
As per NHB Annual Report 2024, the national average of Outstanding Individual Housing Loan to GDP ratio stood at 11.3% as on Mar24. The states with higher industrial activities, urbanisation, per-capita income, and GDP growth have higher mortgage-to-GDP ratio.
In the exhibit below, we have tried to overlay state-wise per-capita income and mortgage-to-GDP ratio. We find that there is a correlation between the two as states with higher per capita income also witness higher mortgage- to-GDP ratio.
To better understand the corelation between economic activities and penetration of housing finance in India, we have presented a grid (refer Exhibit: Deducing the states of India on various frontiers/ Selective expansion in states where the foundations of change are strong) bifurcating HomeFirst focus states (Gujarat, Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh, and Karnataka), HomeFirst emerging states (Madhya Pradesh, Rajasthan, and Uttar Pradesh) and others on select parameters.
5A.1. HomeFirst states account for ~80% of affordable housing finance market in India
GDP growth in India has been non-linear across states with few states depicting higher growth and investments. Western states of Maharashtra and Gujarat and the southern states of Tamil Nadu, Karnataka, Telangana, and Andhra Pradesh stand apart
on the grid. These are our "focus states" and represent 52% of total affordable housing disbursement in the country in the ticket size of 5 Lakhs to 25 Lakhs as of FY24. We believe the states of Uttar Pradesh, Madhya Pradesh and Rajasthan are emerging large markets for HomeFirst representing 21% of total affordable housing disbursement in the country, as of FY24.
5B. HomeFirst Emerging States building strong foundation with growth potential
In this section, we present Gujarat as an example of how consistent investments in capex and industrialisation aka manufacturing supported by policy measures and fine execution helped the state to grow faster than the national average. Also, we draw inference for our "emerging states" i.e. Uttar Pradesh, Madhya Pradesh and Rajasthan which are witnessing rising trend in per capita income, parallel to where states like Gujarat or Maharashtra were 10 years back.
5B.1. Gujarat: Policy fore-sight, investments in core infrastructure, industrial corridors & MSMEs
Over past 20+ years, Gujarat has strategically leveraged capex-led industrial projects to drive sustained economic growth. A key catalyst has been the improved connectivity with financial hub through the Delhi- Mumbai Industrial Corridor (DMIC), with six of its 24 nodes located in Gujarat. Complementing this, mega infrastructure projects like the Mumbai-Ahmedabad High-Speed Rail, Dholera Special Investment Region (D- SIR), Mandal Becharaji Special Investment Region (MBSIR), Gujarat International Financial Tech (GIFT) City, Diamond Research and Mercantile (DREAM) City, Sanand Industrial Hub (known for automotive manufacturing centre), Valsad-Vapi Industrial Cluster (known for textiles, pharmaceuticals, and textiles), have bolstered the states position as an industrial hub.
The Gujarat Industrial Policy 2015 and 2020 provided various schemes supporting growth in investments like Market Development Assistance Scheme, Scheme for Assistance for Industrial Infrastructure, Aatmanirbhar Gujarat Scheme for assistance to MSMEs etc. The capital investments subsidies of up to 15% of Fixed capital investments and the interest subsidies of up to 7% for 5 years, specially to MSMEs, resulting in a 60% increase in MSMEs from FY15 to FY18—now over 35 lakh units. During FY25, the Aatmanirbhar Gujarat Scheme for assistance to MSMEs saw expenditures of ~ 1,480 Crs and the FY26 allocation is expected to further increase ~ 1,550 Crs.
Some of the key development schemes undertaken by state governments include:
• Among the early states to focus on renewable energies with first wind policy in FY93 and solar policy in FY09. Over years, the state continued to focus on developing renewable energy resource; FY21 being a landmark year with the Gujarat Hybrid Renewable Energy Park or Khavda Solar Park proposal being approved. The project is expected to be completed in FY27 and generate 30GW renewable energy (both wind and solar).
• Swarnajayanti Shaheri Vikas Yojana was launched in FY10 targeting urban civic infrastructure.
• In FY18, 14,895 Crs (8.7% of total budget expenditure) was allocated towards Narmada, Water Resources, Water Supply and Kalpasar division to improve water resources in the state. This included 4,018 Crs (2.3% of total budget expenditure) allocated for the construction of minor canals in the Sardar Sarovar Canal project and 3,311 Crs (1.9% of total budget expenditure) towards water supply projects.
Today, the state is one of Indias most dynamic economic frontiers, balancing industrial robustness with policy foresight. Over the past decade, the state has clocked a GDP CAGR of ~11.6%, growing from 8.07 lakh Crs ($ 132 bn) in FY14 to 24.3 Lakh Crs ($ 288 bn) in FY24. It contributes a massive 31% of Indias total exports, underscoring its role in global trade. Petroleum products, engineering goods, pharma & chemicals, gems & jewellery form 80% of total export.
The state has built a brand under "Vibrant Gujarat" to hold global investor summits and invite private investments driven by the context set by the government investments and policy making. The first summit was held in FY04 with total MoU worth 55,000 Crs which reached to 25 Lakh Crs in the seventh edition in FY15 and to 45 Lakh Crs in FY24. The investments
The states performance in FDI is equally compelling — attracting $ 20 bn between Apr21-Dec24, ranking third nationally. Gujarats industrial base in chemicals, automobiles, electronics, and pharmaceuticals continues to attract global investors. Anchoring the future is the Dholera Special Investment Region (D-SIR), envisioned as a world-class industrial hub.
Infrastructure forms the foundation of Gujarats rise. With 84,188 km of roads (density of 0.43 km for per km2 area), and 16,816 Cr allocated in FY24 (5.5% of total budget expenditure) for further urban-rural connectivity, the state also benefits from cutting-edge freight logistics, including dedicated freight corridors and the upcoming bullet train project. In power generation, Gujarat has increased its capacity from 28 GW (FY14) to 45.3 GW (FY24), clocking a CAGR of ~5%, with a strong renewable push via the Gujarat Solar Policy.
Gujarats telecom and digital coverage is expansive with 564 lakh subscribers as of Mar24. Its cities — Ahmedabad, Surat, Rajkot, Vadodara, Gandhinagar, and
Dahod — are part of the Smart Cities Mission, fostering digitization, green energy, and clean infrastructure.
In social infrastructure, Gujarat has achieved a literacy rate of 82.4%, among the highest in India, with an education budget of 3,000 Crs in FY25. On healthcare, the state boasts 1,717 Primary Health Centers and 9,132 Sub-Centres, supported by a 19,348 Crs allocation in FY25 (5.8% of total budget expenditure).
Tourism has seen a surge — from 4.5 Cr tourists in FY17 to 13.6 Crs in FY23, driven by promotion of coastal, heritage, and religious circuits like Dwarka, Somnath, and the Rann of Kutch.
Key policies propelling Gujarats growth include:
• Gujarat Industrial Policy, 2020
• Gujarat Electronics Policy, 2022
• Other policies: Solar Policy, Garment Policy, Start-up Gujarat, Logistics Policy
Besides allocation of state and private capex, execution remains the key for a state to convert the capex into a
5B.2. HomeFirst Emerging States at inflection point with investments made in socio-economic infrastructure and rapid GDP expansion
Our Emerging States - Uttar Pradesh, Madhya Pradesh, and Rajasthan - have been actively investing in infrastructure with state focussing on developing core infrastructure like transportation, ports, energy, and industrial zones. Also, these states are attracting private investments through various policies, incentives, and summits. Another common feature among these states is developing tourism and promoting exports. We have tried to list some of these efforts here to highlight how our Emerging States have fared against the national averages on key parameters and what builds in our confidence to target growth in coming years.
5B.2.1. Uttar Pradesh - Rising growth powerhouse
Uttar Pradesh ("UP") is undergoing a silent transformation, emerging as one of Indias fastest- growing states. With a GDP of 25.5 lakh Crs ($ 300 bn) in FY24 and a 10-year CAGR of ~10.5%, it now edges past Gujarat in scale. The state has registered $ 1.3 bn in FDI (Apr21-Dec24), reflecting investor confidence and policy success.
Ups exponential rise in exports (1.7 lakh Crs in FY24) showcases diversification beyond agriculture — into electronics, defence, and logistics. The Noida Electronics Manufacturing Zone and UP Defence Corridor are flagship initiatives aimed at boosting industrial employment.
Infrastructure has received a massive boost. Although UP has total roads of 4.2 lakh km (density of 1.75 km for per km2 area), the 36,223 Crs budget for FY24 (5.2% of total budget expenditure) is driving expressway development and rural connectivity. The Ganga Expressway, Purvanchal Expressway, and Bundelkhand Expressway are redefining internal logistics. In railways, UP is revamping major junctions under the Amrit Bharat Scheme.
Its power generation has doubled over the decade from 19 GW to 36.5 GW (2024), with a CAGR of ~6.7%. The state has the largest telecom base in India — 1,666 lakh wireless and 17 lakh wireline connections — and 10 sm a rt ci ties u n d e r th e cen tra l m i ssi on .
Socially, UP is improving steadily. Literacy is at 69.7%, and the government has allocated a substantial 49,000 Cr FY25 towards education budget (6.7% of total budget expenditure). Healthcare too has received momentum with 2,919 PHCs and 20,781 Sub-Centres, and a massive 42,774 Cr health allocation in 2025 budget (5.8% of total budget expenditure).
Uttar Pradesh has 10 cities of the total 100 under Smart City Mission - giving a major uplift to these centres of growth. Major thrust is upon urban mobility and infrastructure modernization:
• Lucknow: Implementation of smart traffic management and e-governance services.
• Agra: Development of heritage conservation projects and smart tourism infrastructure.
• Varanasi: Focus on riverfront development and smart healthcare facilities.
• Kanpur: Initiatives for industrial development and smart mobility solutions.
Other Smart Cities include Jhansi, Prayagraj (Allahabad), Aligarh, Bareilly, Moradabad, and Saharanpur with focus on development of health and senior care facilities, heritage and lake conservation, integrated command centers, roads with underground utilities, city beautification under thematic projects, and improved health and waste services using Smart Health ATMs and composting solutions.
Tourism is a game-changer for the state — rising from 14 Cr visitors in FY17 to 48 Cr visitors in FY23 and further higher in 2024 driven by the grand success of Maha Kumbh. Sites like Ayodhya, Kashi, and Mathura are under heritage development, with a 1,000 Crs tourism infrastructure plan in action.
Key policy initiatives by the state includes:
• Electronics Manufacturing Policy, 2024
• Logistics Policy, 2024
• Solar Energy Policy, 2024
• Start-up UP Policy, 2022
Uttar Pradesh held first global investor summit in FY18 which attracted MoU worth 4.3 lakh Crs; the figure more than doubled in FY24 to 10 lakh Crs with projects spanning across renewable energy, food processing, housing and real estate, hospitality, and entertainment.
5B.2.2. Madhya Pradesh: Emerging Industrial Heartland
Madhya Pradesh ("MP") is the second largest state in India and has positioned itself as a strong player in Central India, blending its agrarian strength with industrial ambition. The State leverages its strategic central location and excellent connectivity to key business centers, offering an ideal environment for investment. With a FY24 GDP of 13.63 lakh Crs ($ 160 bn) and a 10-year CAGR of ~12.0%, the state has shown consistent growth over the past decade.
The state has received FDI inflow of ~$ 320 mn between Apr21 to Dec24, especially in agro-processing, textiles, and automobiles. MP is actively developing MSME clusters, with an infrastructure investment of 10,000 Crs since 2018.
Road infrastructure spans 71,274 km (density of 0.23 km for per km2 area), with 8,603 Crs allocated in FY24 (3.1% of total budget expenditure) to boost both national and rural highways. In railways, MP has 5,140 km of network, undergoing electrification and doubling projects. Its installed power capacity rose from 13.8 GW to 28.2 GW (2024), showing the highest CAGR of ~7.5% among our emerging states.
Telecom coverage now exceeds 8.52 Cr users, and 7 cities are being developed as Smart Cities, including Bhopal, Indore, and Gwalior.
On the social front, literacy stands at 70.6% with the education budget of 22,600 Crs in FY25 (6.9% of total budget expenditure) to further boost education infrastructure in the state. Healthcare is being upgraded with 1,394 PHCs and 12,938 Sub-Centres.
MP attracts over 11.2 Cr tourists annually (FY23), up from 8.4 Crs in FY17. Known for ecotourism, national parks (Kanha, Bandhavgarh), and heritage trails, the states brand - "The Heart of Incredible India" is slowly evolving.
Smart City Mission covers 7 cities in Madhya Pradesh.
Noteworthy among these are:
• Indore: Indias cleanest city for 8 consecutive years, with 100% waste segregation and innovative waste- to-energy solutions.
• Bhopal: Focus on education, research, and tourism, with projects like smart classrooms and digital libraries.
• Jabalpur: Development of greenfield smart city with emphasis on sustainable infrastructure.
• Gwalior: Initiatives for modernizing infrastructure and improving public services.
Other cities include Ujjain, Sagar, and Satna with focus on heritage revitalization, urban mobility, and civic infrastructure upgrades like smart lighting, museum redevelopment, and stormwater drainage systems.
The state aspires to become a $ 2 trillion economy by FY47 as set in the new Industrial Promotion Policy (IPP) 2025. Some other key recent policy interventions include:
• MP Start-up Policy, 2022
• MSME Development Policy, 2025
• Export Promotion Policy, 2025
5B.2.3. Rajasthan - Securing Traditions with Forward-Looking Model
Rajasthans development path reflects a unique mix of heritage and modern infrastructure. With a GDP of 15.3 lakh Crs ($ 180 bn) and a 10-year CAGR of ~10.7% in FY24, the state has focused on creating a balanced economic model.
The state has received total FDI inflows of $ 2.2 bn between Apr21-Dec24. The thrust is on solar energy, mining, electric vehicles, and textiles. RIICO (Rajasthan State Industrial Development & Investment Corporation) and annual investment summits have been instrumental in attracting industries.
Rajasthan has 2.8 lakh km of roads (density of 0.8 for per km2 area), with a 4,928 Crs budget for FY24 (1.3% of total budget expenditure) aimed at road widening and inter-city connectivity. In railways, 5 Vande Bharat trains are operational, and the state is improving semi-highspeed corridors.
Power generation increased from 17 GW to 32.8 GW in FY24, at a CAGR of ~6.6%. Telecom user base crossed 6.68 Crs by mid-2024, and 4 cities (Jaipur, Ajmer, Udaipur, Kota) are active under Smart City Mission.
In education, Rajasthan lags slightly with a literacy rate of 66.1%, but the state has earmarked 40,000 Crs in FY25 for educational improvements. Healthcare infrastructure includes 2,259 PHCs, with 17,716 Crs allocated for medical facilities (3.6% of total budget expenditure) and a growing network of medical colleges. Jaipur, Udaipur, Kota, and Ajmer are covered under Smart City Mission giving a major uplift to these centres of growth. Other cities in Rajasthan like Jodhpur, Alwar, and Bhilwara are also focusing on smart infrastructure and urban development.
• Jaipur: Completion of 9 major projects including multi-level parking and facade improvements.
• Udaipur: Ranked 5th in Smart City Mission with projects like sewer line installations and water treatment plants.
• Kota: Ranked 10th with focus on modernizing infrastructure and public services.
• Ajmer: Ranked 22nd with initiatives for sustainable development and quality of life improvements.
Tourism remains a key growth pillar — from 4.3 Cr visitors in FY17 to 18.2 Cr visitors in FY23, making it one of the top 5 states in footfall. Forts, palaces, and religious circuits draw global attention.
Key enabling policies include:
• Rajasthan Solar Policy, 2019
• Start-up Policy, 2022
• Handicraft Promotion Policy, 2022
• EV Policy, 2023
• Investment Promotion Scheme, 2024
Uttar Pradeshs per capita income is where Gujarat was around a decade back. With the focus on growth, industrialisation, improving socio-economic landscape, the state will continue to witness rapid rise in per capita income which in turn will drive demand for housing and housing finance. Given the size of the state - population (3.3x of Gujarat) and economy (equal to that of Gujarat), the business potential is huge. Per Capita income in Rajasthan and Madhya Pradesh are already inching close to national per capita income of $11,112. All three states have low mortgage-to-GDP ratio and offer potential in coming decade. For instance, Madhya Pradesh is already a sizeable and among the fastest growing markets for HomeFirst.
6 . Technological and Digital penetration bringing in new opportunities and challenges
Technology, in todays world, is not just omnipresent but is bringing in disruptive innovation and it is of utmost importance to move with the pace of technological advances to maintain relevance and effectiveness of the business model.
India, as a country, has leveraged the technology to create a plethora of digital public goods and services. This has allowed India to connect a large number of citizens and provide a more democratic and an inclusive digital network and infrastructure. Underpinning this infrastructure is the "India Stack", a set of open Application Programming Interfaces (API), which is unlocking economic building blocks like identity, payments, and data, thereby creating a platform for facilitating transactions and providing goods and services - as depicted in the exhibit below.
6A. Artificial Intelligence, Automation, and Analytics ("AAA") in Lending
Financial institutions globally are embracing Al-based systems for the various benefits they offer. Artificial Intelligence ("AI"), automation and data analytics are helping lenders sustain and fuel business growth via a streamlined lending life cycle.
There are many technology tools available today in the market that are revolutionizing the lending sector globally. AI, Machine learning ("ML"), Robotic Process Automation ("RPA"), Natural Language Processing ("NLP"), and Optical Character Recognition ("OCRs") are some of the few new-age technological advancements that genuinely possess the potential to bring a dynamic shift in the way loan approvals and disbursals are taking place globally. These technologies and tools enable saving time and labour expenses by improving efficiency, service quality and accuracy as repetitive manual tasks are performed with higher precision, speed, and agility.
Predictive machine-learning (ML) models are being increasingly being used to manage bounce-rates, customer retention, cross-selling, and more. Innovative tools like smart chatbots, with the help of AI, offer comprehensive and personalised self-help solutions - taking customer service to next level. They can update borrowers on their loan status, closure, and personalised solutions. Virtual assistants and chatbots can also guide borrowers through the loan application process and improve their chances of loan approvals. Loan chatbots are helpful in other activities as well. For instance, these can be deployed to make debt recovery simpler by sending timely payment reminder messages. Real-time updates about EMIs improve the chance of borrowers repaying promptly. Chatbots also reduce the effort and time required by field agents for debt recovery.
RPAs significantly reduce human errors, automate mundane tasks, assist with regulatory compliance, enable significant cost savings, promise 24*7 support, and lower the risk of cyber fraud.
Data analytics, on the other hand, offers valuable insights and helps predict borrower behaviour which in turn aids in formulating strategies. These innovations also help in areas like risk management and fraud control. Data lake offers a single source of data storage and retrieval system that not only helps in reducing the turnaround time, but also improves quality of the data by ensuring validation check at the entry level.
7. A welcoming and Conducive Regulatory Framework and Policy Support towards Sustainable Growth 7A. Government schemes targeting construction, credit, and credit subsidy in affordable housing space
In the last few years, policy makers in India have taken substantial measures to address the challenges in affordable housing and cater to the housing needs of the urban and rural poor through various interventions. Flagship initiatives such as the Rajiv Awas Yojana (2009), Pradhan Mantri Awas Yojana (PMAY - 2015; PMAY - 2024) etc. are some of key notable interventions. PMAY 2.0 was launched in Sep24, with a goal to construct 3 Cr houses over the next five fiscal years. PMAY-U 2.0 scheme has four subschemes:
• Beneficiary Led Construction ("BLC"): The BLC scheme provides financial assistance for eligible EWS beneficiaries to construct new pucca houses in their own available land.
• Affordable Housing in Partnership ("AHP"): AHP is a centrally sponsored scheme and financial assistance is provided to EWS beneficiaries for owning affordable houses being built in partnership with states/union territories/cities including private sector and industries.
• Affordable Rental Housing ("ARH"): Creation of ARH through existing Government funded vacant houses or through construction, operation, and maintenance for EWS and LIG.
• Interest Subsidy Scheme ("ISS"): Subsidy is provided on home loans for eligible beneficiaries. Households belonging to EWS, LIG and MIG category with an annual income of up to 3,00,000, 6,00,000, and 9,00,000, respectively, will be eligible to avail the benefits of ISS.
The FY26 Union Budget increased the allocation for PMAY-U from 15,170 Crs in FY25 to 23,294 Crs for FY26. The allocation for Interest Subsidy Scheme was increased from 1,500 Crs in FY25 to 3,500 Crs for FY26. Under the erstwhile scheme (PMAY - 2015), the interest subsidy was credited upfront to the loan account of the beneficiary with primary lending institutions (PLI), resulting in reduced Equated Monthly Instalment (EMI). However, under PMAY-U 2.0 the interest subsidy will be released in five equal yearly instalments. Further, if the borrower has taken a housing loan from one PLI and later on switches to another PLI for balance transfer, such beneficiary will not be eligible to claim the benefit of interest subsidy again. This significantly reduces the balance transfer amongst the lenders. Under the scheme the end borrower is expected to receive a benefit of up to 180,000 with a NPV of approximately 150,000 during the tenure of the loan.
7B. Priority Sector Lending definition expanded to cover wider customer universe
On March 24, 2025, RBI released a circular broadening the scope of definition for PSL in most categories w.e.f. 1st Apr25. The broadening is largely targeted towards adjusting for inflation. For housing, the definition has been expanded to cover loans up to 50 lakhs (on a property value of 63 lakhs) as against 35 lakhs (on a property value of 45 lakhs) earlier. The change is positive for both banks and HFCs.
7C. Accommodative Monetary Policy Framework with Liquidity infusion, Rate-cuts
During FY23, inflation went up globally, including India, led by soaring food and fuel prices. This prompted major central banks to hike interest rates. The Reserve Bank of India raised the repo rate by a cumulative 250 basis points to 6.5% in FY23. Similarly, the US Federal Reserve increased interest rates by a cumulative 525 basis points between Feb22 and Jul23.
However, the inflation has now eased off from the peak. For the full year FY25, CPI inflation eased to 4.6% from 5.4% in FY24. The moderation was driven by record low core inflation at 3.5% (vs 4.3% in FY24), while food inflation was volatile and high at 7.3% (vs 7.5%). However, Q4FY25 saw a reversal in the trend with nonfood inflation gaining ground and food inflation dropping sharply. In Apr25, CPI inflation further eased to 3.2% driven continued softening in food inflation which dropped to 1.8%.
For the year FY26, the high base of last year would provide cushion. Also, healthy Rabi sowing, soft global food prices and the expected above-normal monsoon shall keep check on food inflation. As per Apr25 report of Crisil, CPI inflation is expected to be 4.3% in FY26.
The easing of inflation provided some leg room for Central banks to bring down policy rates. Globally, major central banks are currently cautious about cutting rates, amid slower disinflation and strong economic growth. The US Federal Reserve cut the federal funds rate by total 100 basis points with first rate cut of 50 bps in Sep24 followed by 25 bps each in Nov24 and Dec24 in response to the easing inflationary pressures.
In India, RBI also began to ease its monetary policy stance. The central bank decreased the repo rate by 50 basis points (delivering two consecutive rate cuts of 25 basis points in Feb25 and Apr25) to 6.0%, citing easing inflation, which had moved closer to its target rate of 4%. Depending upon global rate cut cycle and domestic inflation, there might be further rate cuts in FY26.
Further, in addition to the repo rate cut, the RBIs announced serval measures to manage liquidity in the banking system, and to stabilize the local currency. Such measures included, open market operations (OMO) purchases, USD/INR buy-sell swap auctions, and daily variable repo rate (VRR) operations, cut in cash reserve ratio.
7D. Set up of RDCL - a Resident Mortgage-Backed
Securitization (RMBS) Company by NHB
National Housing Bank (NHB), a statutory body under the Government of India has set up RMBS Development Company Limited (RDCL). On January 23, 2025, RMBS Development Company Limited (RDCL) received Certificate of Registration from Reserve Bank of India to commence operations. RDCL is expected to play the role of a commercially sustainable market intermediary to facilitate the growth, development of Residential Mortgage-Backed Securitisation (RMBS) market in the country and promote housing finance liquidity. The development of RMBS market can emerge as a reliable complement to existing sources of funding and liquidity for Primary Lending Institutions. The company unveiled its logo in Feb25. The first transaction was executed in Mar25.
7E. Multiple changes towards customer protection and strengthening the governance
Regulator has been focused on safeguarding interest of borrowers and has been actively bringing in guidelines towards this effect. In FY25, the Reserve Bank of India strengthened the Fair Practices Code to enhance borrower protection and ensure responsible lending. Key measures and proposals include focus on timing and method of disbursement to ensure interest charge begin only after the actual disbursement of the loan, not from the date of sanction or agreement or issue of cheque. Additionally, prohibition on pre-payment and foreclosure charges on non-business floating rate loans, ensuring greater flexibility and fairness for borrowers. These changes collectively aim to improve transparency, reduce hidden costs, and promote ethical lending practices. Also, the regulator, from time to time, has been enhancing the governance to bring in increased transparency in operations and disclosures by various stakeholders.
Conclusion
As India continues to lead the world in economic growth, increased per capita income and urbanisation are predicted to fuel urban growth. This, in turn, would drive demand for urban housing, especially in the affordable space (5-25 lacs housing loan ticket size range). Addressing this shortage presents a substantial financing opportunity of 29 lakh Crs ($ 355 bn) by 2030. We believe that affordable housing finance is expected to deliver mid-teen growth in terms of value, in line with previous decade. Structural reforms and initiatives by the government and conducive regulatory framework provides the right landscape to harness this opportunity.
As economic development accelerates and urbanization deepens, HomeFirst is well-positioned to capture rising housing demand and support financial inclusion as we continue to focus on our mission of being the Fastest Provider of Home Finance for the Aspiring Middle Class, delivered with Ease and Transparency.
Our performance overview
1. Snapshot of FY25 and key updates
During FY25, HomeFirst continued to scale its business across its 13 states / UT. Annual disbursals were 4,805 Crs rising 21.2% on a YoY basis; AUM, at 12,713 Crs, grew 31.1% on YoY basis. This performance was driven by continuous expansion of our granular distribution network across our key markets, strong liquidity, effective risk management, the seamless integration of technology across processes and a highly experienced, trained, and motivated workforce. Our collections remained strong leading to stable asset quality with Gross Stage 3 (GNPA) at 1.7% compared to 1.7% as of Mar24; prior to RBI classification circular of Nov21, it stands at 1.4% (Mar24: 1.4%). Credit cost for FY25 was at 30bps in-line with 30bps for FY24. These efforts resulted in a best-in-class return on assets (RoA) of 3.5% (FY24: 3.8%) and a return on equity (RoE) of 16.5% (FY24: 15.5%). Net profit saw a substantial increase of 25.0%, reaching 382 Crs.
In Apr25, HomeFirst has successfully completed its maiden Qualified Institutional Placement (QIP), raising 1,250 Crs. The strong participation underscores the continued confidence of the investor community in HomeFirsts differentiated business model, robust governance, and long-term growth potential. The QIP saw participation from marquee institutional investors. Several existing investors increased their shareholding, reaffirming their commitment to the Companys journey. This capital infusion will further strengthen our balance sheet by increasing our CRAR and reducing leverage. With a strong capital base, HomeFirst remains well-positioned to expand its footprint, deepen customer engagement, and deliver sustained value to all stakeholders.
Let us delve into the foundational elements that shaped our growth story for FY25.
2. Distribution Network
We have a contiguous approach towards branch expansion with clear focus on larger affordable housing finance markets (Please refer to macro discussion of MD&A for details of key parameters). Over years, we have been expanding to newer districts within our 13 states/ union territory, penetrating deeper into existing districts and focussed on gaining market share facilitated by our unique business model.
As of Mar25, we had a network of 361 touch points, including 155 branches covering over 141 districts in 13 states and union territory in India. Over last three years, we have almost doubled our branch count from 80 as of Mar22 to 155 as of Mar25. Of these 75 new branches, nearly two-third came from focus states as we continue to penetrate deeper. Over the course of the FY25, we expanded into 10 new districts to now cover 141 districts vs. 131 districts at the start of the year. Our focus states continue to account for approximately 52% of the countrys affordable housing finance market (in terms of annual origination based on FY24 data) and our emerging states account for approximately 21% of affordable housing finance market.
Exhibit - Contagious network expansion to cover large affordable housing finance markets
| State/ UT | Mar22 |
Mar23 |
Mar24 |
Mar25 |
||||
| Branch | District | Branch | District | Branch | District | Branch | District | |
| Andhra Pradesh | 6 | 7 | 9 | 9 | 9 | 9 | 11 | 11 |
| Chhattisgarh | 1 | 4 | 3 | 4 | 4 | 5 | 4 | 5 |
| Haryana & NCR | 1 | 2 | 1 | 2 | 2 | 3 | 3 | 3 |
| Gujarat | 21 | 22 | 24 | 22 | 31 | 22 | 36 | 23 |
| Karnataka | 4 | 5 | 6 | 6 | 6 | 7 | 7 | 7 |
| Madhya Pradesh | 5 | 6 | 8 | 7 | 11 | 10 | 14 | 12 |
| Maharashtra | 17 | 16 | 19 | 17 | 22 | 19 | 26 | 19 |
| Rajasthan | 7 | 5 | 8 | 8 | 10 | 8 | 12 | 9 |
| Tamil Nadu | 12 | 18 | 22 | 24 | 23 | 25 | 24 | 25 |
| Telangana | 5 | 5 | 8 | 12 | 9 | 12 | 10 | 14 |
| Uttar Pradesh & Uttarakhand | 1 | 8 | 3 | 8 | 6 | 11 | 8 | 13 |
| Total | 80 | 98 | 111 | 119 | 133 | 131 | 155 | 141 |
Note: District count is basis total touchpoints in the respective state/ UT
As of Mar25, 114 of our branches are present in the western and southern states of India, namely Maharashtra, Gujarat, Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana (together referred to as the "Focus States"). We have established a strong presence in these states due to higher level of economic activities which lead to these states enjoying higher per capita income and mortgage-to-GDP ratios as against the national average. We have discussed this in length in the macro section of MD&A. We believe these focus states still have enough opportunities to penetrate deeper and their continuously improving socioeconomic landscape present substantial potential to expand our AUM.
Additionally, we have been growing our footprint in Rajasthan, Madhya Pradesh, and Uttar Pradesh (collectively, the "Emerging States"), alongside our Focus States. These states have been witnessing GDP growth of 10-12% over last decade and have immense potential to follow suit the focus states. As of Mar25, we operated 23 touch points (including 14 branches) in Madhya Pradesh, 22 touch points (including 12 branches) in Rajasthan, and 16 touch points (including 4 branches) in Uttar Pradesh.
More than three-fourth of our sourcing is through our vast network of connectors. Our loan process is easy, transparent, and customer-friendly with a focus on needs of the customer segment we deal with. Our front-end teams are well educated, trained and able to effectively assess all sources of a customers income and guide them on aspects of obtaining financing. We have set up a paperless process to onboard customers efficiently and our managers conduct home and workplace visits to ensure minimal disruption to a customers daily routine. We believe that these initiatives have assisted us in establishing a strong reputation as a customer friendly organization. Our distribution model is anchored around granular sourcing model and our highly trained, experienced, and motivated team who seamlessly execute the thoughtfully-crafted flow and thus gaining market share. This is evident from the market share trend in some large markets we operate in.
Exhibit - HomeFirst market share build-up in key cities in terms of Origination
HomeFirst Market Share in 5-25 Lakh ticket size |
|||||
| City | Mar18 | Mar22 | Mar23 | Mar24 | Sep24 |
| Jaipur | 0.2% | 3.2% | 3.8% | 4.0% | 4.4% |
| Ahmedabad | 1.8% | 2.9% | 3.3% | 3.7% | 3.7% |
| Surat | 2.3% | 2.6% | 3.3% | 4.1% | 4.5% |
| Indore | 0.2% | 3.2% | 3.6% | 4.0% | 5.2% |
| Nagpur | 0.7% | 3.1% | 3.9% | 4.0% | 4.3% |
| Raipur | 0.4% | 1.6% | 2.2% | 2.8% | 4.3% |
| Hyderabad | 0.1% | 2.7% | 3.0% | 3.0% | 3.4% |
| Bangalore | 0.4% | 2.2% | 2.5% | 2.5% | 2.5% |
| Chennai | 0.5% | 1.9% | 2.2% | 2.3% | 2.0% |
| Lucknow | NA | 0.0% | 0.3% | 1.2% | 2.6% |
Source: Bureau and Company data
Disbursements: The Company disbursed 4,805 Crs in FY25, a significant increase from 3,963 Crs in last year, reflecting a robust growth of 21.2% yoy. HomeFirst has consistently experienced growth in monthly disbursements, supported by an expanding borrower base and a strong loan portfolio. During the year, our customer base grew 24% to 1,17,989 active customers as of Mar25. This success can be attributed to our strategically planned branch network expansion, the introduction of innovative financial products, and the adoption of advanced technology to streamline operations and enhance customer satisfaction.
Assets Under Management: Our Assets Under Management (AUM) grew from 9,698 Crs as of Mar24 to 12,713 Crs as of Mar25, reflecting an impressive y-o-y growth of 31.1%. This achievement highlights our capability to fulfil customer demands and strengthen our market share in our focus markets. Going ahead, growth would be fuelled by (a) increasing market share in existing markets/ branches, and (b) expanding coverage through new branches.
| AUM in States (?Crs) | FY17 | FY20 | FY25 | CAGR (FY17-25) |
| Gujarat | 280 | 1,438 | 3,676 | 38% |
| Maharashtra | 310 | 785 | 1,773 | 24% |
| Tamil Nadu | 80 | 360 | 1,646 | 46% |
| Telangana | 9 | 176 | 1,084 | 82% |
| Andra Pradesh* | - | 47 | 698 | 71% |
| Karnataka | 76 | 325 | 796 | 34% |
| Madhya Pradesh | 13 | 141 | 1,039 | 73% |
| Uttar Pradesh & Uttarakhand | 19 | 96 | 830 | 61% |
| Rajasthan | 25 | 179 | 789 | 54% |
3. Product Metrics
We remain committed to serving all customer profiles throughout their home loan journey by offering a diverse range of products. We serve both salaried and self-employed customers. Salaried customers account for 67.9% of our AUM and self-employed customers account for 32.1% of AUM, as of Mar25. Our business focus continues to be on core home loan segment which contributes to 83.7% of our total AUM as of Mar25; with a strong presence in the core affordable housing finance segment, i.e. self-construction loans, as well as builder-led individual home loans and home resale options. We diligently monitor our risk profile and maintain minimal exposure to under-construction properties. As of Mar25, our Loan-to-Value (LTV) at the time of origination stands at 55.1%. Based on AUM, as of Mar25, more than 38.2% of AUM has LTV below 50% and 42.8% of AUM has LTV between 50% and 80%. Contribution from new-to-credit customers to our AUM, as of Mar25, is at 14.5% - the same has been on a declining trend over last decade.
4. Credit Underwriting Process
Our underwriting process is powered by data science, offering a centralized approach combined with a comprehensive understanding of local property markets and driven by highly experienced, well-trained underwriters. Our centralised approach offers a lot of benefits including better management of workflow leading to higher productivity, steeper learning curve for underwriters and agility. We have established a strong and structured credit approval system which ensures strong asset quality of our portfolio.
5. Asset Quality
We have set up a robust collections management system wherein approximately 96.9% of our collections during the FY25 were non-cash based, which eases stress on monitoring financial transactions and reduces our cash management risk. As of Mar25, 96%+ of our customers are registered for an automated debit facility. We track the status of instalments collected through a collection module in our system. We employ a structured collection process wherein we remind our customers of their payment schedules and to maintain adequate balance in their account on the due date, through automated calls and text messages. We perform predictive analytics to predict the probability of bounce and help us initiate appropriate action to mitigate risks. Our collections process is completely managed by our branch teams. Half of our front-end teams incentives are dependent on collections.
We initiate recovery action immediately after a customer default in monthly payment and the severity
of our action increases as the number of days past due increase. At one day past due, our front-end teams call customers and visit them to understand reasons for the default and for recovery of the dues. At 30 days past due, while our employees continue to engage with the customer, we send them a default notice. At 60 days past due, we send a loan recall/ Pre-SARFAESI letter and our employees reiterate the repercussions of loan default to the customer. Thereafter, we seek to resolve cases by initiating legal action through SARFAESI at 90 days past due.
Apart from customer selection and strong underwriting, our focused approach on collections has helped us in sustaining a stable asset quality and delivering low credit cost. Our tiered collection strategy, led by our front-end team, prioritizes the containment of early delinquencies, which remains integral to maintaining consistent collection efficiency and strong asset quality.
We have maintained a strong emphasis on early bucket collections, ensuring consistent focus in this area. Additionally, we provide convenient payment options for our customers, including app-based payments and remote payment links. These enhancements simplify the payment process, further contributing to the strength of our collections.
Our Gross Non-Performing Assets (GNPA) ratio remains stable at 1.7% (1.4% pre-RBI circular) as of Mar25. Furthermore, our Stage-3 Total Provision Coverage Ratio is 46.6% (54.4% pre-RBI circular) as of Mar25, compared to 50.9% (75.7% pre-RBI circular) as of Mar24.
7. Risk Management
At Home First, risk management is a dynamic and continuous process designed to identify, assess, quantify, and mitigate potential risks, thereby supporting informed decision-making and sustainable business growth. The overarching goal is to strengthen long-term financial resilience by proactively managing both financial and nonfinancial risks.
Key focus areas:
• Ensuring compliance with regulatory and prudential norms laid out by various regulators and the Board.
• Identifying business-related risks and establishing methods for quantifying them.
• Continually assessing and strengthening existing controls and suggesting risk mitigants or their enhancement.
• Monitoring Board-approved Risk Appetite thresholds for key risks.
• Anticipating emerging risks from regulatory and economic developments.
Home First is inherently exposed to multiple risks typical of financial services, including Credit Risk, Market Risk, Liquidity Risk, Interest Rate Risk, and Operational Risk (including IT-related risks). Additionally, non-financial risks related to Reputation, Compliance, ESG-related, and Cybersecurity are also faced by the business.
We have an independent Risk Governance Structure in place, ensuring clear separation of roles and independence in risk measurement, monitoring, and control. This structure complies with regulatory expectations and is supported by frameworks such as the Risk Appetite Framework, Stress Testing, Early Warning Signals (EWS), and the Internal Capital Adequacy Assessment Process (ICAAP).
These frameworks are evaluated on regular basis and enhanced to maintain their relevance and effectiveness. Management Level Committees and the Risk Management Committee (RMC) continually monitors various risks and respective mitigants; actions are taken basis the same.
Risk Governance & Risk Management Framework
Home First adheres to the highest standards of corporate governance, which reflect the core values of fairness, accountability, and sustainability. The Board provides strategic guidance while ensuring oversight and compliance. Its composition-diverse and inclusive—strengthens objectivity and transparent decision-making, with Independent Directors playing a pivotal role.
Risk oversight is conducted through regular reviews by the Risk Management Committee (RMC) and other management-level committees. These forums ensure alignment with the companys risk strategy and regulatory standards.
The Risk Management Committee periodically reviews key risks and related policies to ensure alignment with strategic growth plans. Sub-committees of the Board—ALCO, Risk Management Committee, and IT Strategy Committee-support risk monitoring. The Audit Committee oversees adherence to these frameworks and evaluates their adequacy in managing evolving risks.
Risk Appetite (RA)
Risk Appetite represents the level and type of risk the organization is willing to accept in pursuit of its business goals. It is defined within the companys risk-bearing capacity and strategic vision.
At Home First, the Risk Appetite Framework outlines limits for key risk categories, supported by both quantitative and qualitative parameters, and aligns them with overall business strategy. These thresholds are monitored by the Risk team and presented to management committees and RMC to ensure timely action, as and when required.
Early Warning Signals (EWS)
Home First has instituted an EWS framework to identify early signs of potential NPAs or fraud. It leverages data such as borrower profiles, credit bureau reports, product types, collateral details, and customer behaviour patterns to categorize risk and pre-empt adverse outcomes.
Internal Capital Adequacy Assessment Process (ICAAP)
As a Middle Layer NBFC under RBI classification, Home First is required to implement ICAAP. The ICAAP framework assesses capital adequacy in relation to the companys risk profile.
Home Firsts ICAAP Policy identifies material risks not captured by regulatory capital requirements and incorporates stress testing, scenario analysis, and projected financials.
Senior management-including the MD & CEO, Dy-CEO, CBO, CFO, CHRO, and CRO-regularly evaluates projected financials including capital position after considering critical business and macroeconomic success factors and ensures that the Company is adequately capitalized to meet its business plans.
Though submitted annually, ICAAP is a continuous process involving dynamic reassessment. The outcomes are first presented to the RMC, then approved by the Board before being submitted to the regulator. An independent review by third party is also conducted annually.
Stress Testing
Home First conducts stress tests to evaluate the potential impact of severe but plausible adverse conditions. The updated stress test policy defines scenarios, tolerance thresholds, mitigation strategies, and reporting protocols across Credit, Concentration, Liquidity, and Interest Rate Risks.
Emerging Risks
Emerging risks are newly developing or rapidly evolving threats that may have a significant impact on the financial industry but are often difficult to quantify due to limited historical data. These risks may arise from technological disruption (e.g., cyber threats, AI misuse), climate change, evolving regulatory landscapes, or geopolitical tensions. In the financial sector, proactively identifying and assessing such risks is crucial for resilience and long-term sustainability.
At Home First, a relatively flat organization structure with agile risk governance practices helps effectively anticipate and prepare for the impact of emerging risks by fostering faster decision-making, improved communication, and a more responsive approach to change.
Risk & Crisis Management
Crisis management encompasses preparation, response, and recovery from significant disruptions. At Home First, crisis preparedness operates at three levels:
Total Income: Our total income increased by 33.1% to 1,539.2 Crs for FY25 from 1,156.5 Crs for FY24, primarily due to increase in interest income on term loans - 1,280.2 Crs for FY25 (up 32.0% from 969.6 Crs for FY24). Interest income on term loan is driven by growth in our Principal outstanding - 30.7% for FY25. Net gain on DA is linked to higher volumes of DA transaction during the year - 705.3 Crs during FY25 (FY24: 414.1 Crs). As of Mar25, total DA as a percentage of AUM was at 12.9% (Mar24: 12.6%). We commenced corporate agency during FY25 and started accruing insurance income since Aug24. This led to an increase in Fee and Commission income - 45.3 Crs during FY25 (FY24: 9.9 Crs) driving 35.5% growth in non-interest income.
Spread on Loans: Our Spreads for FY25 are at 5.2% (excluding co-lending) as against 5.5% for FY24. During the year, our yields were flat - at 13.6% - in line with FY24 partially supported by 35bps hike in Aug24. FY25 witnessed tight liquidity position in the banking system leading to continuous increase in deposit rates and MCLRs of the banks which caused increase in our CoB - increasing by 20 bps to 8.4% in FY25, from 8.2% in FY24.
Our strong and diversified borrowing-mix helped us in restricting the impact of tight liquidity in the system on our borrowing cost.
Operating Expenses: We continue to reap the benefits of our technology-driven, customised business flows which are complemented by our unique people strategy to ensure high productivity and thus, low cost. Despite considerable expansion in our operations - branch count (155 as of Mar25 vs. 133 as of Mar24) and employee count (1,634 as of Mar25 vs. 1,249 as of Mar24), we maintained our high productivity ratios with disbursement per employee and branch for FY25 at 3.3 Crs and 33.4 Crs respectively, in-line with FY24 - 3.5 Crs and 32.5 Crs respectively. Consequently, our opex-to- average total assets for FY25 was at 2.7% (down from 2.9% for FY24).
Profit After Tax (PAT): Continued increased in scale with stable asset quality and effective utilization of operating leverage has led to remarkable growth of 25.0% in our Profit After Tax (PAT), rising from 306 Cr in FY24 to 382 Cr in FY25. As a result, our Return on Equity (RoE) surpassed the critical 16% threshold, increasing from 15.5% in FY24 to 16.5% in FY25.
Resource Mobilisation
Shareholders Funds: Our Shareholders Funds as on Mar25 stood at 2,521 Crs. The increase was primarily due to increase in retained earnings. The capital infusion done in Apr25 will further boost the Companys capital base with proforma Shareholders Fund at 3,751 Crs.
| Particulars | Crs |
| Opening Equity as on Mar24 | 2,121.49 |
| Add: Shares issued during the year - represents increase on account of face value for the shares allotted pursuant to ESOPs exercised | 0.31 |
| Add: Increase in securities premium on account of premium received on allotment of shares | 33.36 |
| Add: Statutory Reserve transfer for the period | 76.80 |
| Add: Increase in retained earnings (net off transfer to statutory reserve) | 275.67 |
| Add: Option valuation linked credit | 18.51 |
| Add: Other Comprehensive Income | (4.86) |
| Closing Equity as on Mar25 | 2,521.28 |
ESOP allotment: In line with our inclusive growth philosophy, we make our employee part of the growth journey of HomeFirst by making them beneficiaries of our ESOP schemes. During FY25, the company issued and allotted 15,39,373 equity shares to eligible employees through the exercise of stock options under its ESOP plans. Additionally, 11,84,000 ESOPs were granted to employees during the year as part of the HomeFirst ESOP Scheme 2021 and ESOP Scheme 2024.
Strong Capital position with healthy Capital to Risk- Weighted Assets Ratio: The company, as of Mar25, has capital adequacy ratio of 32.84% with Tier-I at 32.47%. The capital infusion done in Apr25 will further boost the Companys capital base and CRAR.
The table below outlines our capital-to-risk-weighted- assets ratios for the specified periods.
| Mar25 | Mar24 | |
| CRAR (%) | 32.84% | 39.48% |
| CRAR - Tier I capital (%) | 32.47% | 39.08% |
| CRAR - Tier II capital (%) | 0.37% | 0.40% |
Borrowings: As we continue to scale up our operations, we aim to further diversify our borrowing sources across multiple pools of capital. The companys borrowings stood at 9,550.7 Crs as of Mar25, compared to 7,302.1 Crs as of Mar24.
During the year, the company successfully raised 5,371 Crs in funding (other than equity). Our liability management strategy emphasizes prudent diversification across 35 lending partnerships, with a strong focus on securing long-term borrowings at competitive rates. Additionally, we expanded our lending partnership expanded by adding 4 new partners including Development Finance Corporation (DFC), Canara Bank, Bandhan Bank and Aditya Birla Housing Finance Ltd.
During FY25, the Company has not issued any Commercial Paper or any Short-Term Instrument. Accordingly, the Companys Commercial Paper outstanding was NIL as at Mar25.
Direct Assignment: During FY25, purchase consideration of 705.3 Crs was received through direct assignments, leading to the de-recognition of the corresponding assets in the companys books. As of Mar25, the total portfolio includes 1,636.5 Crs under direct assignment, up from 1,219.1 Crs in Mar24.
Co-lending: We have co-lending partnerships with the Central Bank of India and Union Bank of India. During the FY25, we expanded our co-lending partner network by adding first private sector bank - Axis Bank. Over the fiscal year, we successfully disbursed loans amounting to 153.3 Crs with co-lending contributing to 2.9% of our AUM as on 31 Mar25. Our strategy includes expanding our co-lending portfolio over the medium to long term. We believe that co-lending offers a distinctive advantage by combining the banks access
to low-cost funds with the capability of NBFCs (including HFCs) to efficiently source retail customers and manage them, including collections. Our goal is to expand co-lending transactions over the medium term.
Healthy Asset-Liability Position: HomeFirst has a disciplined approach to asset liability management (ALM). The Company carefully monitors the behavioural and contractual maturity periods of our assets and liabilities and classify them under their respective maturity buckets based on estimates and assumptions which considers relevant behavioural pattern as per historical data. As of Mar25, the Company has positive ALM position on a cumulative basis across all buckets.
9. Credit Ratings
We retained our strong credit ratings, reaffirming our financial health and fund-raising capabilities. Improved ratings remain a priority to secure lower-cost funding in the future. With improving scale of operations, increasing profitability, capital base and lower leverage, we strive to improve further on our credit ratings in FY26.
| Rating Agency | Instrument | Credit Ratings FY23 | Credit Ratings FY24 | Credit Ratings FY25 |
| Term Loans and NCD | AA- (stable) | AA- (stable) | AA - (stable) | |
| ICRA | Commercial Paper | A1 + | A1 + | A1 + |
| India Ratings & Research | Term Loans and NCD Commercial Paper | AA- (stable) A1 + | AA- (positive) A1 + | AA- (positive) A1 + |
| CARE Ratings | Long-term Bank Facilities | AA- (stable) | AA- (stable) | AA- (stable) |
10. Human Resources
Our human resource strategy is a key pillar in our execution strength, allowing us to have high productivity and deliver optimized operating cost. We are committed to fostering an environment that supports the growth and development of our employees. Apart from hiring the right talent, we provide training on various technical aspects and soft skills and leadership skills, offer attractive compensation and career progression opportunities, while fostering a healthy culture which has increased employee retention. We have also adopted certain policies aimed at strengthening employee welfare, including the HR (Human Rights) Policy, the Equal Opportunity Policy, and the Parental Leave Policy.
For further details on training programs, employee benefits, and engagement initiatives, please refer to the Human Capital Chapter on page 81.
The Companys strong ratings reflect its healthy earnings profile, substantial capital base, solid net worth, and steady growth in operations. As of Mar25, our employee strength increased to 1,634, compared to 1,249 in Mar24.
11. ESG
Environment, Social, and Governance (ESG) is gaining significant traction globally, with sustainability in operations evolving into a fundamental requirement rather than just a hygiene factor. HomeFirst has positioned itself as a frontrunner, showcasing transparency in governance through comprehensive disclosures, green initiatives, and the digitalization of processes. HomeFirsts initiatives are designed to create a significant socio-economic impact on the lives of underprivileged and vulnerable communities. HomeFirst has been committed to contributing to the development of a resilient society and fostering an equitable, inclusive Indian economy. Guided by the CSR Committee of the Board and aligned with its CSR Policy, the CSR activities encompass a wide range of focus areas, including skill development, employment opportunities, childrens education, school development and healthcare.
These efforts, combined with fostering a thriving and dynamic workplace environment, have earned HomeFirst an ESG Score of 46, an increase from the previous years score of 34 from S&P Global. Morningstars Sustainalytics continues to assign a Low Risk rating on ESG Risk parameters, with a score of 16.2—the best among BFSI peers. Such recognition from leading agencies underscores HomeFirsts commitment to sustainability and exemplary corporate governance. For further details on ESG practices, please refer to the Sustainability Report starting from page 44.
12. Internal Control Systems and Internal Audit
The RBI has mandated the introduction of a Risk-Based Internal Audit for all deposit-taking housing finance companieswith effect f ro m J u ne 30,2022. Acco rd i ngly, HomeFirst has a Risk-Based Internal Audit Policy in place. The Company has a Head of Internal Audit, Board to plan and conduct the Risk Based Internal Audit of various functions and locations of the Company. Also, the Company had appointed 3 firms as Joint Internal Auditors viz, M/s BDO India LLP to assist in conducting the internal audit of Head Office functions and M/s. P Chandrashekhar LLP and M/s. Kirtane & Pandit LLP to assist in conducting the internal audit of Branch functions for FY25. These firms further support the Head of Internal Audit in the process of Risk Based Internal Audit.
The Internal Auditors were tasked to conduct comprehensive audits of functional areas and operations, covering branches and HO processes which is commensurate with the size and nature of its business, to examine the adequacy of, and compliance with policies, plans and statutory requirements.
The Company has an adequate internal Control System to ensure adherence to the companys policies and procedures, compliance with applicable laws and regulations, to ensure that management information and financial reporting are correct, reliable, and complete, to enable the detection and prevention of fraud and errors and to safeguard the company assets against loss from unauthorised use or disposition, amongst others. Further, the internal control system is commensurate with the size of the business as well as the industry in which the Company operates. The Company has appointed Internal Auditors to ensure compliance with the companys policies and procedures and compliance with applicable laws and regulations. Also, the Statutory Auditors independently evaluates the internal financial controls and certifies their adequacy and effectiveness in the Audit Report. The Audit Committee of the Board reviews the performance of the internal audit, the adequacy of the internal control systems and compliance with regulatory guidelines. The Audit Committee also provides necessary oversight, gives recommendations, and monitors the implementation of such recommendations.
13. Outlook
Over last fifteen years, we have built a large affordable housing finance franchise with a unique business model driven by centralised data-science backed underwriting, granular sourcing model, curated business processes and flows which are powered by technology integration and highly motivated people. We are well-positioned to capitalise on the opportunities provided by strong underlying housing finance demand. As we strive to establish a reputable brand in the housing finance industry, we remain dedicated to becoming the "Fastest Provider of Home Finance for the Aspiring Middle Class, delivered with Ease and Transparency."
Cautionary Statement
This document includes forward-looking statements regarding anticipated future events, as well as the Companys financial and operational results. These statements inherently involve assumptions and are subject to risks and uncertainties. There is a considerable likelihood that these assumptions, projections, or forward-looking statements may not be accurate. Readers are advised not to place undue reliance on such statements, as various factors could lead to significant deviations between the assumptions and actual outcomes or events.
The Company does not undertake any obligation to publicly update, modify, or revise forward-looking statements considering subsequent developments.
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